How We’re Different: Debt Shield’s Debt Negotiation and Settlement Program
Unlike other debt relief options, debt settlement may actually reduce the amount of money it takes to pay off your unsecured creditors. While other debt relief options include extended payment plans that result in years of additional interest costs, debt settlement can help you reduce your monthly payments and help you become debt free in as little as 12-36 months.
We project that most Debt Shield graduates will be out of debt in 30 months. All interest, late fees are included in the lump sum settlement, which on average* is less than 40% of the balance owed at the time of the settlement.
That means you may be able to repay about half of the amount you owe to satisfy all of your enrolled debts – and be debt free in just a few short years!
The debt negotiation and settlement process is fairly simple. Prior to enrollment, a debt consultant will customize a debt settlement program and help set up a savings plan based on what you can afford. A monthly savings — which is significantly less than minimum monthly credit card payments — is deposited by you into a separate, third-party bank account until there is enough to present your creditors with a settlement offer.
Once the requisite funds have accumulated, Debt Shield’s representatives will negotiate with your creditors, one at a time, to settle your enrolled unsecured debt accounts. Creditors typically accept a debt settlement when they realize you cannot repay the full amount of the debt and are at risk of filing bankruptcy. If you file bankruptcy, depending on which type, they may receive nothing. Depending on your circumstances, creditors will often agree to accept a lump sum amount in full satisfaction of your unsecured debt on a particular account. The debt is often settled for about half of the original balance, though our average settlement rate*, including late fees and interest, is less than 40% of the balance at the time of settlement. Once an account is successfully settled, we will move onto your next creditor and start the negotiation process again.
Debt negotiation and settlement can be one of the fastest debt resolution options. At Debt Shield, we believe debt settlement is the perfect choice for many debtors, but it’s certainly not for everyone. Debt settlement is an option for people who are unable to repay a debt due to a financial hardship such as unemployment, divorce, medical emergencies, death in the family or other loss of income. People experiencing legitimate financial hardships can use debt settlement to get out of debt when they cannot afford credit counseling and want to avoid filing for bankruptcy.
To qualify for most debt settlement programs, you must have a minimum of $7,500 to $10,000 in unsecured debt, for example credit card debt or medical debt. Secured debt, on the other hand, is backed by collateral such as a mortgage or car loan.
Remember, debt settlement is an option for people who cannot keep up with their minimum monthly payments and want to avoid bankruptcy. Creditors will not negotiate on a debt when they believe you can repay the entire balance. Debt settlement works when there is a legitimate financial hardship that is keeping you from paying your unsecured debts.
We invite you to see whether you will qualify for our debt settlement program. However, we know that not everyone finds that our program is their best option due to the amount of their debt, types of debt, or other factors.
If you are ready to learn how debt settlement can potentially get you out of debt faster and for less money than other debt relief options, complete our online application to see if debt negotiation and settlement is right for you.
* Settlement averages do not include 0% settlements or client-initiated settlements that are above our recommended limits. Sometimes clients choose to settle a debt for more money than Debt Shield recommends in order to settle the debt faster.
