Which if often referred to as Debt Negotiation is the process of negotiating to resolve unsecured debts for less than the full balance owed. Through a personalized financial strategy and budgeting, the process allows you to become debt free in a shorter period of time and gain financial independence from high interest debts. A recent report [1 ] shows that on average consumers save $2.64 for each $1.00 paid to a Debt Settlement program.

Federal regulation provide consumers with various protections including prohibiting companies who provide Debt Negotiation services from charging fees in advance of the debt actually being resolved for the consumer. As a federally regulated program, Debt Settlement programs have become a practical option for consumers who are struggling with high interest debts. The significant payment relief and a quicker path towards being debt free are two key benefits provided by such programs. However, by entering into an agreement with your creditors to pay an amount lesser than the balance owed, your credit score may be adversely impacted.

like many consumers who opt for this option, your credit score may have already been impacted due to late payments, closed/ charged off accounts, or high utilization ratio on credit cards. In which case this program can help you regain control of your finances and help your credit score begin to improve as credit accounts are resolved.