Debt Relief

Debt Settlement Nationwide is one of the fastest growing debt management companies online. We provide debt relief solutions for negotiating a legal settlement with the creditors for credit card debt and unsecured loans.

Are you a Candidate for Debt Settlement?

Today's economy has changed significantly over the last 25 year and even the last even 5 to 10 years look quite a bit different. The United States dollar is the weakest it has ever been, and statistically we aren't looking that great either. Nationally, 36.5 million people were below the poverty level in 2006. This is even before the foreclosure rates spiked wildly. Research by the Federal Reserve indicates that household debt is at a record high relative to disposable income.

According to the Federal Reserve, close to 50% of all families in the United States spend more than they earn. This means that debt is everywhere! Almost one out of every 100 households in the United States will file for bankruptcy. With economic times being as they are and the job market being so tight, people's circumstances can change and in a hurry. If you’re reading this article, you’re probably one whose circumstances have changed for the worse, and you may find yourself facing bankruptcy. But, there is another option that isn’t nearly as financially painful: debt settlement.

If most of your debt is unsecured, you may be a good candidate for debt settlement. Debt settlement pretty much only works on unsecured debt. While, you may be able to negotiate down interest and late charges on secured debts like a mortgage or car payment, you could negotiate down actual balances with unsecured debt. If you’re 120 days or late on your revolving debt or later, you’re probably a good candidate for debt settlement. If the creditor or debt collector is reporting the debt on your credit report as a "charge off" / report code I9 or R9, then settling the debt is the smartest decision you can make to get the debt resolved. Not resolving the debt, at this point, will just make matters worse.

Debt settlement does have a negative impact on your credit because you’re not paying the debt in full, as you agreed to do. But, unlike bankruptcy, it doesn’t show as a separate negative item on your credit reports. The only way it’s apparent that you settled a debt is that the creditor will indicate Settled" or "Paid in Full for Less than Full Balance" on your credit reports. Debt settlement does it generate a public record, and it doesn’t stay on your credit report for as long as a bankruptcy. A bankruptcy can stay on your credit report for up to 10 years. Debt settlement can only stay on for a maximum of 7 years.

Many creditors will initially offer to settle the debt for 75-80% of the balance, but will typically settle for 30-50% of your balances. Why? Having a non-performing loan is worse for them than having one that’s settled for less than the balance. To start with, if you declare bankruptcy, the creditor will probably get nothing at all. And, something is better than nothing. Secondly, the longer the creditor has a non-performing loan, the worse it looks for them in front of the Federal Reserve Board and their investors. So, creditors also benefit by taking a settlement and getting the account off their books.

Debt settlement is an aggressive way of handling your past-due debt and should only be considered if bankruptcy is your only other option. Once you’ve approached your creditors about settling the debt for less than what you owe, you are immediately viewed as a credit risk. But, if you’re already 120 to 180 days past due, the benefits of debt settlement will by far outweigh any consequences, particularly if your credit accounts are already charged off or otherwise reported as I9 or R9. At this point, it’s no longer a decision of whether you’re a good candidate for debt settlement, but rather a question of what you are waiting for. Settle your accounts now, and start your road to financial recovery.

Try our free debt relief counseling session. Our debt settlement services have helped thousands of consumers become debt free. We negotiate with your creditors and reduce or eliminate your outstanding balances.