Debt Settlement
Debt Settlement is the fastest and least expensive option to get out of debt without filing bankruptcy. Also known as debt negotiation, debt settlement is an ambitious approach to debt reduction for debtors experiencing the strains of too much debt and has considered bankruptcy as an option.

Debt settlement companies will negotiate with the creditors on behalf of the client to settle for an amount much less than the balance owed. In return, the debtor will make a settlement payment for the balance owed. Once the debt has been paid in full on the settled amount, the creditor will issue a letter to the credit bureaus stating the debt has been "Paid", "Settled", and/or "Settled for less than full amount."

Creditors are usually willing to settle the balance of debt owed if the debtor is under a financial hardship. If the debtor chooses to file bankruptcy, then the creditor would receive nothing, therefore, it is their desire to get some payment towards the balance owed.

The Benefits Of Debt Settlement
Debt settlement means that part of your debt is immediately wiped out by your creditor. You will find instant financial relief in your monthly budget. And the rest of your debt payments are much more manageable. Debt settlement as several benefits. For instance, your debt can be reduced up to 55%, by having business specialist negotiate with your creditors.

Settlement Letters
We settle thousands of accounts every month to help our clients get out of debt. Debt-Medics prides ourselves on getting results - check out these letters for actual settlements we have obtained for our clients by clicking below.

» Settlement letters (PDF)

Debt Management
Debt Management is often referred to as “credit counseling”, “debt consolidation” or “debt pooling”. Through a Debt Management program, the client’s credit card interest rates are reduced, in most cases, enabling them to pay more toward their principal instead of interest charges. The creditors will also stop any late fees and penalties from accruing on the client’s accounts. The client can become debt free in 3 to 6 years on average through this program. If the client pays the debt back on their own, it may take 10, 20 or even up to 50 years to pay off their debt depending on the amount of debt they owe. The client will also have the convenience of making only one payment per month and the processing center will send the money to the creditor’s on their behalf. The 3 biggest benefits of a debt consolidation program are lower interest rates, faster pay off term and one convenient payment per month.

Understanding Interest Charges
If the client owes $20,000 worth of credit card debt at an average interest rate of 23%, the client is paying approximately $4600 per year in interest. Divide $4600 by 12 months – That equates to $383 in simple interest that the client is paying per month if they pay the debt off on their own. Keep in mind that the $383 in interest that the client pays does NOT go toward paying off their balance. It goes into the credit card company’s pocket. If this client is only making a minimum payment of $440 that means that only $57 is actually going toward their balance. In this scenario, it would take the client approximately 30 years to get out of debt. By the time they paid the balance off, they would have spent $158,000.

How Debt Management can help
If the client were in a debt management program, the interest rate could be lowered to approximately 9%, in most cases, depending on their mix of creditors. That means that this client could be paid off through debt management in approximately 3-6 years. That’s 21-24 years sooner!

What are the benefits of Debt Relief?
Determining the best benefits of debt Relief depends on your situation and your goals. Here is a listing to consider:

Avoid Bankruptcy
Bankruptcy is not your only option! Our goal is to help you determine the right course of action for you to take. We will connect you with a debt settlement company today that will help you avoid filing for bankruptcy protection. Personal bankruptcy should be considered as a last resort to a debt management option because the outcomes are long-lasting and extensive. Since the new law went into affect, most people will qualify for a Chapter 13 bankruptcy which in most cases is a five year repayment plan to the creditors. A bankruptcy stays on your credit report for 10 years, affecting ones ability to obtain credit, buy a home, get life insurance, or even obtain a job.