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Debt Settlement

What is Debt Settlement?

Debt Settlement, also referred to as debt resolution, involves negotiation with your creditors to reduce the amount owed. It is an aggressive, yet highly effective approach to resolving debt issues and a viable bankruptcy alternative. While it’s true that this debt relief method can lower the outstanding balance on your debt, it’s an involved process that you need to understand before jumping into it. Credit card debt settlement is one of the best and quickest options to get rid of debt quickly for those wanting to avoid bankruptcy.

How Does Debt Settlement Work?

Debt settlement is a debt relief strategy that is most effective with a bit of planning and experience. When exploring debt settlement as an option to resolve your debt, you may want to work with a company that specializes in negotiating with your creditors on your behalf. By working with an experienced company, you could avoid some of the more severe risks associated with this debt settlement and also streamline the process as debt settlement companies work with hundreds, if not thousands of consumers and have developed relationships with many creditors and collection agencies to achieve the best possible outcome for their clients.
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Step 1

The first step is to call or fill out this form for a free consultation. We will speak with you about your specific situation and to understand your goals. We will evaluate the types of accounts you have and then present custom debt settlement options that fit your needs. This includes a free savings estimate and determining a comfortable savings amount that you can commit to setting aside each month to go toward resolving your debt. This monthly savings amount will accumulate in a dedicated savings account that you set up and control.

Step 2

Once we establish an affordable monthly program payment that works with your budget, you enroll in ODS’s program. We begin working on your behalf immediately. As your funds accrue in your dedicated savings account, we are negotiating with your creditors to settle your enrolled debts. We will remain in contact with you throughout the entire process and let you know when we are about to reach an agreement with each creditor. You will then have the opportunity to approve the settlement.

Step 3

Once a settlement is negotiated and a payment is made toward that settlement, you pay the fee associated with that account. So we only earn our fees after we get you results!

Step 4

After the account is settled in full, we request that your creditor updates your credit report to reflect that you have settled the account in full and report a zero balance. At this point we will continue working on the remaining enrolled accounts until they are all resolved.

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Pros and Cons of a Debt Settlement

Advantages of Debt Settlement

Advantages

  • Speed Become debt-free much faster compared to other debt relief options or paying on your own.
  • Affordability Consolidates your eligible debt into one, affordable monthly payment
  • Lower Cost Debt settlement will result in a lower overall cost compared to credit counseling or paying on your own.
  • No Upfront Fees ODS doesn't charge fees until we obtain a settlement

Disadvantages of Debt Settlement

Disadvantages

  • Requires patience The process could appear slow at first while you accrue enough funds to work with and allow time for negotiations to take place, but the process typically takes 36-48 months from start to finish.
  • Collection Calls. Creditors may continue collection efforts, including threatening legal action before reaching a settlement agreement
  • Credit Impact Debt settlement will affect your credit score, but not as much as bankruptcy

What types of debt are eligible for debt settlement?

Qualified

  • Credit Card Debt
  • Department Store Cards
  • Gas Cards
  • Personal Loans
  • Collection Accounts
  • Payday Loans
  • Medical Bills
  • Repossessions

Unqualified

  • Federal Student Loans
  • Secured Loans
  • Auto Loans
  • Utility Bills
  • Taxes
  • Mortgages
  • Child Support
  • Alimony

How does Debt Settlement Compare to Other Debt Relief Options? There are various options when it comes to tackling your debt, such as:

Is Debt Settlement Right For You?

If you are struggling to keep up with your minimum payments or have already fallen behind on your payments. Debt settlement is worth considering as an option to resolve your debt. It’s not for everyone, so make sure you speak with a debt specialist to help determine which option is best for you. If you feel debt settlement is the right program for you, speak with one of our certified debt specialists today.

Need Help navigating the various debt relief options?

Speak with a Certified Debt Analyst for a free consultation.

Call Today: (877) 336-7008

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* We do not discriminate on the basis of race, race, color, religion, sex, marital status, national origin or ancestry. Our clients who make all their monthly program payments pay approximately 70% of their enrolled debts over 24 to 48 months. Not all of our clients are able to complete their program for various reasons, including their ability to set aside sufficient funds. Our estimates are based on prior results, which will vary depending on your specific circumstances. We do not guarantee that your debts will be resolved for a specific amount or percentage or within a specific period of time. We do not assume your debts, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Our service is not available in all states and fees may vary from state to state. Please contact a tax professional to discuss potential tax consequences of less than full balance debt resolution. Read and understand all program materials prior to enrollment. The use of debt settlement services will likely adversely affect your creditworthiness, may result in you being subject to collections or being sued by creditors or collectors and may increase the outstanding balances of your enrolled accounts due to the accrual of fees and interest. However, negotiated settlements we obtain on your behalf resolve the entire account, including all accrued fees and interest.