Debt settlement is a more aggressive approach to debt reduction than a debt management program. Debt settlement is appropriate for consumers with a serious amount of credit card and/or medical debt and are behind on their payments. Most of our clients are able to avoid bankruptcy and become debt free in 2-3 years. The debt settlement consumer advocate negotiates with the creditors to settle the debt for a much lower amount than owed, as our client saves their money for a lump-sum settlement payment. After the debt is settled, the creditor will send a letter stating the debt obligation was fulfilled, and will report to the credit bureaus that the debt has been settled with a "0" balance owed.

Creditors will usually settle for much less than owed when the debtor is under serious financial strain, because if the debtor chooses bankruptcy; and is approved, then the creditor gets nothing. Creditors want to get as much money as they can get.

Debt settlement is a way to get out of debt in the shortest period of time, with the least amount of money and without filing for bankruptcy. There are some drawbacks though. You will not be able to obtain any new credit cards while you are on this program as your optimum goal is to get out of debt the quickest and safest way possible. Your credit scores will go down temporarily, however they quickly increase as your debt is settled. Our credit restoration and repair department insures your credit report is the best it can be after program completion.