How Debt Settlement Programs Work


There is an old saying we have all heard before. It goes something like this, “If it sounds too good to be true, it probably is.” The same could be said about the debt reduction/debt settlement industry. It sounds too good to be true, however in reality, a debt reduction company can in fact negotiate and settle your debt for a fraction of what you owe.

How you say? Although not simple, it is all done through negotiation. The settlement process of course depends on a number of factors which includes the role of both the borrower and the lender. The lender of course just wants to know when they are going to get their money back. The consumer on the other hand, wants to know if the amount they owe can be negotiated down to a working figure that they can put together to pay off the debt. The details then come down to a manageable monthly payment plan.

For example: Let’s say you owe $50,000 in unsecured debt, and your lenders require you to pay a minimum monthly payment of 3%. You would be paying approximately $1,500/month in interest only, with very little of this money going towards the principal of what you owe.

Now let’s look at Nationwide Debt Reduction’s debt relief plan. Let’s say we can get your creditors to accept 60% of what you currently owe, or $30,000 in this example. If you could continue to pay this $1,500/month you would be completely debt free in 20 months ($30,000 divided by $1,500 = 20 months). And, my friends, that is exactly what we do. However, you may not be able to still pay that $1,500/month because you are financial straights to begin with. So, let’s say you can only afford $1,000/month. Now it would take you 30 months to be completely debt free ($30,000 divided by $1,000/month = 30 months).

Naturally, the levels to which the terms and conditions are accepted through negotiation depend on several variables, however for the most part; it takes a strong company, having superior relationships with the creditors already, to make it all work.

Finally, one has to remember that credit card companies rarely ever lose money. They earn 2.5% -3% from the retailer when you made the initial purchases up front. On the back end, they charge you interest, fees, late charges, over the limit fees, any fees they can get away with. In fact, most statistics show that if you have had a credit card for over 3 years, you have probably paid them back double for everything you have purchased! Sound crazy? It isn’t. So why would a creditor not want to negotiate and settle debt from you, when they have already made a ton of money from you already?

Get in touch with one of our professional Christian debt consultants today and let us show you how much money you can save through this process!