Debt Settlement 101

Jun 17, 2015 by

financial meltdown anxietyThat $2,300 credit card bill you couldn’t pay three years ago when you were laid off has now ballooned to $4,000 because of interest and fees. A collection agent is hounding you and threatening a lawsuit. You can’t afford to lose in court and have your wages garnished, but you don’t have an extra $4,000 to pay off the debt. You’re in panic mode and thinking of bankruptcy. What else can you do to stop the garnishment and ugly collection tactics?

Debt Settlement May Be the Answer!

You don’t have a spare $4,000 to pay off your overdue debt, but you do have $1,500 you could part with if that’s all it took to be done with the matter. But in what parallel universe does $1,500 repay a $4,000 debt? It can be done in THIS universe actually, through a process called “debt settlement.”

In a nutshell, through debt settlement, the collection agency would agree to accept a specific sum—$1,500 in my example—to fully repay the $4,000 debt. I know, it sounds crazy at first. But understand that the collection agency bought your $4,000 debt for pennies on the dollar. The agency makes money even if it accepts just $1,500 to resolve your debt.

Debt Settlement Companies

No industry attracts more scammers, charlatans, and frauds than the money industry. “Debt relief” firms, of which debt settlement companies are a subset, have attracted the Federal Trade Commission’s attention due to shady practices. See “Debt Relief Services & the Telemarketing Sales Rule: A Guide for Business” to learn about the FTC’s curbs on how these companies do business. Watch out!

You Can Settle a Debt Yourself!

Here’s the good news: While not every so-called debt settlement company is a scam, they all charge big fees for a service you can very easily do yourself! Do you have no idea how to get started settling a debt? No worries, that’s why I’m here! 🙂

Let me introduce you to volume 4 of my Simple Guides to Debt, Credit, and Wealth series: “Settle Your Debt in 10 Easy Steps“.

Think of this Guide as Debt Settlement 101. I walk you slowly and simply through the details of each of ten steps to reach a successful debt settlement. You will learn all you need to know to negotiate confidently with your creditor, and the Guide’s many tips will keep you from getting double-crossed by a collection agency.

When you’ve paid off your debt for far less than you owe, collection calls and letters and threats will at last end and your credit score will begin to heal. And not least of all, your stress level will fall and the self esteem the debt collector worked so hard to rob you of will begin to replenish on its own.

The Guide comes with exclusive access to Money Counselor ActionSheets™—including a settlement offer letter template and a script for responding to debt collector phone calls—I’ve designed for Guide readers to make the settlement process as simple as possible.

Trust me, you can do this!

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