Creditors Perspective
Credit card companies are open to debt settlement because they understand they cannot recover any money if you file bankruptcy. When creditors reach an agreement with debt settlement companies, they are guaranteed to get paid, even if it’s only a portion of the original debt.
Credit card companies began establishing debt negotiation departments in the late 1980s and early 1990s specifically for the purpose of negotiating debt.
Creditors often times initially resist the process because they understandably hope to recover the full amount of your debt. This is why legitimate financial hardship is a key to successful debt settlement. Once your creditors understand that they cannot recover the full debt amount because of your dire financial situation, they will often accept a lower amount in full satisfaction of your obligation. Creditors understand they risk recovering nothing if you turn to bankruptcy.
Wiping out your debt balances with debt settlement is a very established process, and one in which most creditors participate because they simply want to get paid.
A company with Debt Shield’s reputation can negotiate a settlement of anywhere between 30-50% of the amount you owe. Not only will you start targeting your principle balances, (instead of throwing money at the interest) you will pay less than if you paid the entire amount yourself over time.
Overall, we believe letting Debt Shield serve as your debt settlement company is a “win-win” situation when dealing with a mountain of unmanageable debt.
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