Our 2 Cents

Debt Settlement (a.k.a. Debt Resolution)

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Debt Settlement - It’s what we do.

Throughout my time here at Freedom Debt Relief, I’ve come across clients who have struggled with debt and made the decision to enroll in Freedom’s Fresh Start Program. Many, after completing the program, are now thriving and have gone on to lead healthier financial lives. They’ve been kind enough to share their stories, their ups and downs, and things that have helped them achieve their goals. When it comes to tackling debt, our clients will agree on one thing – choosing the right “solution” for their situation was crucial to their success. For them, the right choice was debt settlement (a.k.a. debt resolution).

So, is it possible for people to resolve debt on their own? Yes, of course…but for many people who don’t have the time, resources, or know-how to negotiate with creditors, working with a reputable debt resolution company may be the difference between success and failure.

Freedom Debt Relief has been helping people with debt problems for years. As one of the leading debt relief providers, resolving more debt than any other company in the nation, we pride ourselves in getting REAL results for our clients. This is what the team here does day in and day out – it’s what we specialize in. It’s our passion, and if our track record is any indication, you can feel confident that we may be able to help you too.

In this post, I’ll tell you (in a nutshell) what debt resolution is, who it’s for, and what to look out for. Hopefully, for those of you who are contemplating debt resolution, this will help you figure out whether it’s an option to consider.

What is Debt Resolution?
In debt resolution, you work out an agreement with your creditor(s) to make a large one-time payment on your debt (less than what you actually owe) in exchange for forgiveness of your remaining debt. In return, the credit card company will forgive the rest of your debt and consider your account settled.  You should know that, depending on your financial condition, you may have to pay taxes on the amount the credit card company forgives.

But why would a credit card company ever agree to let you pay just a portion of the balance? Simple – something is better than nothing! The credit card company has to reduce their risk and protect their bottom line. Who knows if you will ever be able to pay back in full? However, keep in mind that creditors are not obligated to negotiate with you. In fact, some may flat-out refuse to. This is an instance when the expertise of a good debt settlement company may come in very handy.

 

Who is Debt Resolution for?
Debt Resolution is not for everyone, but for some people, it may be the right option. If you’re severely behind on your payments and heading toward bankruptcy, your lenders may be willing to negotiate with you, giving you a chance to settle your debts and get back on your feet. Debt resolution is something you may want to consider if you are looking to resolve your debts relatively quickly with a lower monthly program payment.


While debt resolution clearly has its advantages, it’s also important to note its potential disadvantages – like negatively impacting your credit score. Also, creditors and collectors are still allowed to contact you during the resolution period. We know the pitfalls that trip up many consumers when they are trying to resolve debt, but when you’re enrolled in Freedom’s Fresh Start Program, our caring and knowledgeable staff will give you the guidance and support you need to help you navigate through the process.

Whatever route you choose to take to resolve debt, the most important thing is to evaluate all of your options first. My suggestion – start by getting a free evaluation and consultation. Remember, there’s no such thing as a one-size-fits-all-solution when it comes to debt relief!

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About the Author:

Tammi Huang is a marketing communications professional and an avid blogger. When not reading industry news or drafting killer content, she enjoys traveling, exercising, and exploring all that the San Francisco Bay Area has to offer.