A debt settlement program is actually quite simple. Your current level of unsecured debt will be skillfully negotiated for you, and essentially you will end up paying a fraction of the debt. Generally, your debt can be reduced by 40% of the current total, on average.
You can be set you up with an affordable monthly payment which is determined on a client-by-client basis between you and a debt counselor. Based upon what you are able to pay each month into your settlement account, it is possible to determine how many months you will be part of the program, and ultimately when you will be debt free.
Throughout the program, communication with your creditors is handled by your debt counselor and the annoying phone calls from collectors will completely cease. Upon enrollment, your creditors are contacted, individually, and told that you have representation. They are also alerted to your interest in settling your debt with them.
Reaching a settlement usually takes dozens of phone calls and communication between negotiators and the creditor. Once a settlement offer has been reached, and you as the client have agreed on this amount, a settlement offer is obtained in writing from the creditor at which point you are instructed on how to disperse funds to the creditor.
With that, the creditor has accepted the payment in full, and you are free of that debt forever.
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