Debt Resolution Programs: Do they work?

Published April 2021
Couple reviewing bills

You may have questions about whether debt resolution programs work. If you’re struggling with debt, it’s worth looking into.

Unsecured debt such as credit card debt can cause a lot of stress and worry, but there’s a solution! Read on to learn more about debt resolution, also known as debt settlement, to find out how it can help you get your financial freedom back.

Key Points: 

  • Debt resolution programs help you gain freedom from your credit card debt by outlining a plan for paying off the debt.
  • A debt settlement program negotiates with creditors to lower the amount you owe on your existing debt.
  • One big benefit of debt settlement is that you don’t need a certain credit score to qualify.

What is Debt Resolution?

Debt resolution programs can help you to gain control of your finances when you have credit card debt by creating a plan for payoff. If you don’t have a significant amount of debt, you may be able to resolve it on your own. But if you have $10,000 or more in debt, you should consult with a debt resolution company such as ClearOne Advantage to explore your debt relief options.

Start the debt resolution process by evaluating your financial situation. Also, knowing the cost of your debt can help you determine the best path to take toward financial freedom, especially if you’re confused about your options.

How Does Debt Settlement Work?

Your debt settlement company will negotiate your existing debt with each of your creditors. The end goal is to get your creditors to settle for less than you currently owe. In fact, with ClearOne Advantage, you could pay as little as 75% of your existing debt after fees. You may also be able to pay off your debt in its entirety in as few as 24 to 60 months.

When combined with budgeting, a debt resolution program can be a solid financial strategy for paying off your debt. Now that you are just making one program payment which is generally lower than the minimum payments you may be paying, it may be easier to stick to your budget.

A budget may also be able to help you keep from accruing additional debt now or going back into debt in the future. Our budget template can help guide you while creating your budget.

One big benefit of debt settlement is that you don’t need a certain credit score to qualify, unlike other debt relief methods such as debt consolidation loans.

Will Debt Resolution Hurt my Credit Score?

Because your accounts are generally delinquent during the negotiation process, your credit score will likely suffer as a result of debt settlement, but not as much as it would if you were to pursue bankruptcy. Keep in mind, if you are currently struggling to make payments, your credit score has probably already been negatively impacted.

While debt settlement will have an impact on your credit score, it is also a step toward financial freedom. Once your credit card debt is resolved, you can work on improving your credit score by making on-time payments and keeping any card balances low.

If you want to relieve the stress and worry that comes with credit card debt, ClearOne Advantage can help. Our Certified Debt Specialists are standing by at 866-481-1597 to help you design a plan that fits your budget. Contact us today to get a free savings estimate.



Topics: Debt Consolidation