Debt Resolution
Get a Free Savings Quote* & Consultation
Are you looking to lower the total amount of your debt with the assistance of professional negotiators? Debt Resolution may be the route for you.
Is Debt Resolution Right for You?
Here at Debt Specialist Group, we want to make sure Debt Resolution is the right fit for you, and that you are matched with a reputable company. Be very careful of companies charging illegal upfront fees before providing the service they promise. There are laws in place to protect consumers, and they regulate how Debt Resolution companies can collect fees. All our programs are diligently screened, vetted, and fully compliant with all state and federal laws. Most importantly they don’t charge any fees until your debt is settled and at least one payment has been made to the creditor towards that settlement (Per the FTC Guidelines). We want to make sure you don’t just enroll in these programs, but you succeed!
What is Debt Resolution?
Debt Resolution gives clients the ability to settle their debts for less than what they currently owe. Once you are approved and enrolled into the program your debt is combined into one low monthly payment. That payment is drafted once a month, into an FDIC (Federal Deposit Insurance Corporation) insured trust account that has been set up in your name. As your money builds up in your account, it will be used to settle your debts with your creditors. This is done one creditor at a time in lump sum payments. Before each settlement is processed however, you will be contacted directly. No payments are processed without your approval first. With each settlement the creditor will update your credit report to reflect a zero-dollar balance. This process is repeated until all your debts have been settled.
Our Debt Resolution Program Consists of 3 Simple Steps
Build/Save
Build savings within your trust account for the purpose of settling debts.
Negotiate
Use the money that builds in the trust account to settle your debts one at a time.
Settle
Client approves settlement and we repeat the process until all accounts are settled.
Debt Resolution Consolidation Loan
This option is a great happy medium between a Traditional Consolidation Loan and a Traditional Debt Resolution program. With this option you get a consolidation loan to pay off your Debt Resolution program, and then pay the loan back as if you would a traditional consolidated loan. This allows clients to drastically decrease the time it takes to complete a traditional debt resolution program. It also decreases the time frame you are late with your creditors since the debts are resolved much faster due to the funds being available.
Things to keep in mind before choosing Debt Resolution
- Debt Resolution is a great option for individuals that are behind on their unsecured debts or struggling to make their monthly payments and foresee themselves falling behind. It is not intended for individuals that don’t have a valid hardship. If you have no problem making your monthly payments, want to stay current with your debts, or would like to keep your credit cards open for future use, this is not the option for you. However, you can choose which cards you put into the Debt Resolution program.
- This is not a good option for individuals that have good credit scores and low balances on their available lines of credit. Obviously when you are late on your monthly payments the creditors report you late, which will have a negative impact on your credit. This is a great option for individuals who are already late, can’t afford their monthly payments and are going to fall behind, or have a lot of debt. Remember, 30% of what creates your credit score is the amount of debt you owe (check out the credit tab on our website). If you have too much debt it not only throws off your debt-to-income ratio but can potentially lower your credit score even when you are on time. Generally, this happens when people are maxed out, and making interest only payments on their debts.
- When enrolled in a Debt Resolution program be aware the original creditor does have the legal right to contact you. Once the account goes to a third party there are laws in place to help protect consumers from harassment. Letters of Representation can be utilized to notify the creditors that the verbal/ written communication can be directed to the Debt Resolution company. Also, if the FDCPA (Fair Debt Collection Practices Act) is violated by the creditors we have programs with Attorneys who may be able to help.
- You should be aware of any Tax Liabilities and Litigation risk. Be sure to talk with your Accountant and Attorney. Ask and fully understand the possibility of 1099’s, litigation, and what steps are in place to mitigate some of the risks associated with Debt Resolution.
The reason our clients are so successful is because we make sure they are not caught off guard. We explain the negatives and positives of every program, as well as the steps put in place to address and minimize each risk.