Debt Settlement: How to Get Out of Debt

Debt can feel overwhelming, especially when you’re doing your best but the balances keep growing. Debt settlement (also called debt resolution) is a debt relief option that may help you resolve unsecured debt for less than you owe. ClearOne Advantage works directly with your creditors to negotiate reduced payoff amounts, so you can settle enrolled accounts at a lower overall cost. This option is not a loan, and it is not bankruptcy. Instead, it’s a negotiated agreement between you and your creditors to reduce the amount you owe.

How does debt settlement work?

Debt settlement works by negotiating with your creditors to accept less than the full amount you owe as payment in full for an unsecured debt.

You can negotiate debt settlement on your own, but it often takes time, persistence, and strong negotiation skills. If you go the DIY route, you typically need to contact each creditor individually, request a reduced payoff amount, and work through negotiations one account at a time. Creditors are not required to accept a settlement offer, so it’s important to get any agreement in writing before making a payment.

Many people choose to work with a debt settlement company to help simplify the process. A reputable company can handle creditor communication and negotiations for you, while helping you understand what to expect at each step.

At ClearOne Advantage, our certified debt specialists work directly with your creditors to negotiate reduced payoff amounts on enrolled accounts. This means can resolve your debts with a clear plan and professional support.

 Want to see what the debt settlement process looks like step-by-step? Learn more about how debt settlement works.

What to expect

 When you work with ClearOne Advantage, here’s what to expect:

• The process starts with a free, 20-minute consultation with a certified debt specialist who will review your situation and customize a plan to meet your unique needs.
• You will have time to review and approve the plan.
• You will begin making deposits to an FDIC-insured savings account that you will control.
• Once sufficient funds have accumulated in your account, ClearOne Advantage will contact your creditors to begin the process of settling your debts.

Learn more about how the ClearOne Advantage program works.

Why would creditors accept less than what they are owed?

It's true that creditors are not quick to accept less than what you owe. However, it is in their best interests to accept a settlement that you can reasonably pay off rather than potentially getting nothing at all.

When your certified debt specialist explains to your creditors that there are limited funds available to resolve your debts, many creditors will realize that they are now competing for those limited funds with other creditors. Negotiating a reduced amount will help a creditor recoup a portion of the money you owe. It also gives you financial relief.

How does debt settlement compare to other debt relief options?

There are a number of alternatives to debt settlement from which to choose, such as:

• Credit Counseling - Debt Management Plan with a Credit Counseling Agency
• Debt Consolidation Loans
• Chapter 7 Bankruptcy
• Chapter 13 Bankruptcy

Here’s a quick comparison of some of the factors to consider with each type of debt relief.

Pros and Cons of Debt Settlement

Each debt relief option comes with its own advantages and disadvantages. It’s important to consider both sides of the equation when embarking on your journey to financial freedom. Here are some of the pros and cons of debt settlement vs other debt relief options.

How much can you save with debt settlement?

Consider Joan's story. By choosing ClearOne Advantage, Joan avoided tens of thousands in interest and reduced her time in debt from over 36+ years to 4 years.

Read more: How much can you save with debt settlement?

Why Debt Settlement?

While Joan's story may seem aspirational, the data shows that this result may be achievable with debt settlement. Consider the data below from a 2020 report commissioned by the American Fair Credit Counsel.

Will debt resolution impact your credit score?

Put simply, yes, debt settlement will impact your credit score.  However,  the impact is not as bad as bankruptcy, which stays on your credit report for seven to ten years.

As you consider your options, keep your eyes on the ultimate goal, even if your credit score may suffer for a while. In the long run, letting our team of certified debt specialists negotiate on your behalf will help you find a way to get your finances under control. Low credit card balances can repair your credit score over time.

Even better, working with ClearOne Advantage can help you alleviate the stress of credit card debt. We want to see you succeed, and our team is dedicated to doing what it takes to help you find financial freedom.

Read some more frequently asked questions about debt settlement.

What should you look for when choosing a debt settlement company?

When you decide to settle your debts, you want to find a debt relief company like ClearOne Advantage with a proven track record of helping consumers get out of debt. Working with a reputable debt settlement company protects you from debt settlement scams.

ClearOne Advantage:

• Has helped thousands of consumers who were struggling with unmanageable levels of debt, including veterans and small business owners.
• Does not charge settlement fees until you have reviewed and accepted a creditor’s settlement offer.
• Has a 100% satisfaction guarantee.
• Has a team of certified debt specialists and negotiators dedicated to your success.
• Is committed to providing you with the tools and resources to live a life free from the burdens of debt.

Let ClearOne Advantage Help You Defeat Your Debt the Smart Way

If you are living with the burden of credit card debt, we can help. With over 10,000 ratings on TrustPilot, ClearOne Advantage has the knowledge and skill to assess your financial needs, develop a specialized debt relief plan to meet those needs and negotiate settlements with creditors on your behalf. We want you to be free of debt in the shortest possible time.

For more information, call 866-481-1597 to speak to a Certified Debt Specialist and get your free savings estimate.

Sources

1. American Fair Credit Council (May 2, 2020) Financial Outcomes for Debt Settlement Programs - https://f.hubspotusercontent10.net/hubfs/6880760/AFCC_Dobbie_Report.pdf
2. Cahill, E (January 16, 2023) 6 Risks of Debt Settlement - https://www.experian.com/blogs/ask-experian/debt-settlement-risks/