Our Solutions
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 a proactive approach for debtors who are feeling the strain and stress of too much debt and are considering bankruptcy.
Practical Debt Relief will negotiate with your creditors on your behalf, to settle for an amount much less than what is currently owed. Once the debt has been paid in full on the settled amount, the creditor will issue a letter to the credit bureaus stating that the debt has been "Settled in Full," "Settled," or "Paid As Agreed."
The reason creditors are willing to settle the balance of the debt is because if you choose to file for bankruptcy, they run the risk of receiving nothing.
Practical Debt Relief specializes in negotiating your debt with IAPDA Certified debt arbitrators employing aggressive tactics to reduce your debt*. Our negotiating process has been tested and developed over years of experience by our team of professionals in the field of finance and credit card debt. We have established relationships with creditors and financial institutions. Our goal is to settle your debt for as low as possible.
Our Proven Step by Step Approach:
| Step 1: | Call or E-mail us for a free consultation. We will analyze your financial situation and determine whether Debt Settlement is for you. |
| Step 2: | We will work with you to determine the appropriate monthly dollar amount you plan to save towards a negotiated settlement*. Usually, this is much less than your current minimum payments. This goes towards paying your debt (not credit card interest charges). These funds will be saved every month in a special purpose account that you can view online anytime. We cannot access the funds except to pay a debtor or financial institution when a settlement is reached. |
| Step 3: | Once enrolled in Practical Debt Reliefs program, we immediately exercise your rights under the FDCPA (Federal Debt Collection Practice Act) in an attempt to handle future creditor communication and reduce the harassing creditor phone calls*. |
| Step 4: | After enough funds have been accrued to make reasonable offers to creditors, we will start the negotiating process. We will keep you notified of ongoing negotiations. Please note, it can take several months of savings before we are in a position to make settlement offers to creditors. |
| Step 5: | Once a settlement is negotiated, we initiate payment from your special purpose account. We then request that your creditors report to the credit bureaus that your accounts be considered "Settled in Full," "Settled," or "Paid As Agreed." This process will be repeated with each creditor until you complete our program and achieve financial freedom. |
| Step 6: | Once all debt has been settled, we discuss your results and determine what steps you wish to take. If you are interested in credit repair*, buying a home, purchasing an automobile, or any other financial service, we will help you find a company that will fit your needs. |
*Clients who are able to stay with the program and get all their debt settled, have realized average savings of 60% before fees, or 45% including our fees, over 24 to 60 months. Including clients who have not completed the program, our clients saved on average 42% before fees, or 27% including our fees over 24 to 60 months. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. Settlement results shown reflect actual settlements negotiated with our clients' creditors on enrolled balances and do not include 20% administration fee. These statements and case studies are examples of past performance and are not intended to be a guarantee of any future settlement results. We do not guarantee that your debts or monthly payments will be lowered by a specific amount or percentage, or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.
