Debt Settlement - Resolves Debts Without Filing Bankruptcy

The fastest growing trend in debt resolution is Debt Settlement. It is a proven and effective bankruptcy alternative. Debt Settlement is most effective for unsecured creditors - which include credit cards, medical bills, and collection accounts of all types.

Below is a hypothetical Debt Settlement:

Debts

Credit Card #1 $10,000 Settled Amount $5,000
Credit Card #2 $10,000 Settled Amount $6,000
Collection Acct $15,000 Settled Amount $9,000

The total savings under this hypothetical is some $15,000.00!

Debt Settlement is most effective when a lump sum payment is used to pay the creditors the settlement amount i.e. a percentage of what is owed. The funds to make the lump sum payment may be raised in a number of ways, including, but not necessarily limited to the following:

Retirement Plan Loans: Many retirement plans (i.e. 401k) allow participants to withdraw a percentage of what is saved in a lump sum. After the debt settlement is completed you repay yourself over time without losing the benefits of tax deferred appreciation.

Home Equity Lines of Credit: This allows you to settle your unsecured debts, like credit cards, for only a percentage of what is owed and pay yourself back while your home continues to appreciate.

SAMPLE Debt Settlement Resolutions - (Each case is unique. Your specific lender and financial situation will affect your results).

MBNA America:
$ 18,437.36 of debt privately settled for 20% of what was owed in a 36 month payment plan for a senior sales executive that was able to avoid filing for bankruptcy.

American Express:
$28,142.20 of credit card debt privately settled for 29% of what was owed in a lump settlement package for a well-known professional that was able to avoid bankruptcy and preserve his reputation.

Discover Financial:
$4,561.03 of credit card debt privately settled for 30% of what was owed for a client going through a difficult divorce.

Providian:
$25,820.74 of credit card debt settled for 50% of what was owed for a management professional allowing him to go into a new marriage debt free and without bankruptcy.

Citifinancial:
$28,972.94 of credit card debt settled for 50% of what owed allowing a family to protect their residence without filing for bankruptcy.