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 What is Debt Settlement?
Debt Settlement is a method of reducing or eliminating your unsecured debt by negotiating an agreed upon payoff amount with your creditors that could be as low as 40-60% your balance. Debt Settlement will save you thousands of dollars and years of repayment.
How is Debt Settlement different than a consolidation loan?
With a consolidation loan, you will group together all of your unsecured debts under one loan. Instead of making multiple payments to various creditors, you only have to make one payment to your loan consolidation company. You may be able to get a lower interest rate and a lower monthly payment with a consolidation loan but this is not always the case. You will still pay back the entire balance of your debts but it typically takes 7-10 years to do so. Debt settlement is not a loan. It is an agreed upon payoff amount that is 40% of your current balance, or better. You typically cannot finance a settlement payoff. With most Debt Settlement programs, you will eliminate your debts in 12-36 months!
How does Debt Settlement compare to Consumer Credit Counseling Services (CCCS)?
CCCS does NOT reduce the total debt you owe. Instead, they try to reduce your interest rates and combine your monthly payments into one payment. In some instances, this new payment can be greater than your combined payments were before entering their plan. Also, this new payment plan may have very little impact on your overall balance. Your credit report will indicate that you are enrolled in a CCCS program, which is considered a major infraction. We are not required to report anything to the credit reporting agencies, and we will not. You should also not be fooled by the fact that CCCS is a Non-Profit Organization. It is true that you do not pay a fee for their services. However, someone has to pay for their operating expenses and their salaries. If you are not paying for their expenses, your creditors are. If you are seeking immediate monthly cash relief, Debt Settlement is a much better solution.
Is there a guarantee?
TDS agrees to refund to the Client, any service fee paid to us, should we be unable to obtain at least one negotiated settlement agreement from the Client's enrolled accounts within twenty four (24) months of the effective date of the Services Contract. The Client must be enrolled with TDS for a minimum of twenty four (24) months and adhere to all terms outlined in the Service Contract. |
Debt Settlement Blog
For recent updates about the debt settlement industry, budgeting information and ways to save money, visit the Total Debt Services Blog. Interact with our staff |
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How will Debt Settlement affect my credit?
If you have perfect credit, Debt Settlement will have a derogative affect your credit. If however, you already have accounts that have been past due, it may not affect your credit any worse than it already is.
How long does Debt Settlement take ?
This really depends on your total debt balance and the length of time it takes for you to build up the necessary funds to settle. The typical debt settlement program takes about 30 months but the actual time can vary between 15-48 months. Every situation is different. Our intent is to get you out of debt as quickly as possible but we also understand that you have other financial requirements. We will customize a program that meets your budget constraints and your financial goals.
Can I pay extra to get out of debt faster?
Not only can you, but it is encouraged. The more money you are able to put towards settlements the sooner you will be back on the right path to your goals. Applying one time windfalls such as income tax returns, bonus checks, and gifts are a great way to accelerate your debt settlement program. There are no penalties for completing early.
Will the creditor's call and harass me?
The original creditor always has a right to call and attempt to collect. We ask them professionally to redirect calls and in most cases it will happen almost immediately. Once the account moves from the original creditor to a collection agency you as a consumer are protected by the Fair Debt Collection Practices Act and a Cease & Desist Verbal Communications letter is sent to stop the phone calls. Collectors that continue to call are in violation of the FDCPA and complaints can be filed against them.
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