Debt Settlement Services

Best Debt Settlement Service as of 2021, according to Trusted Company Reviews

How a Debt Settlement Service Works

Debt settlement services can help you pay off almost any type of unsecured debt. Settlement programs act as a liaison between you and your creditors. The program’s negotiators work out the settlement on your behalf, getting your balances reduced. You only pay a small fraction of the total balance owed on each unsecured debt, including fees and interest. 

Reputable debt settlement companies will first do a budget analysis to determine a comfortable monthly payment for clients. The payments are flexible and designed to fit almost any type of budget. 

Do my creditors get paid monthly with a debt settlement service? 

Your creditors are not paid out of your monthly payment. Your monthly payment gets deposited into a trust account that you control. In your trust account is where the funds will start to accumulate for settlements. This is an FDIC insured account, where your funds are safe and out of reach for your creditors! 

As your funds accumulate, the debt settlement negotiators go to action. One by one, your accounts will get settled and paid off, and before you know it – you’ll be debt-free. 

Do debt settlement companies really work?

At Golden Financial Services, our debt experts are Certified by the International Association of Professional Debt Arbitrators (IAPDA). We’ve been settling debt since 2004 and have an A+ rating with the Better Business Bureau (BBB). Debt settlement services have proven to work, but there are downsides that you need to know about. For a complete list of all credit card relief programs’ pros and cons, visit this page next.

There are credit card relief services, including a validation option, that costs less than debt negotiation and includes credit repair.

The remainder of this page will explain how debt settlement programs work, including the benefits and downsides of this type of service. Debt settlement has many benefits, but if you don’t also equally understand the potential downsides, there’s a good chance that you won’t be successful with the program. You need to know what to expect each step of the way so that if a downside was to occur, you know exactly how the company will resolve it, not getting scared, panicking, and canceling. 

Main Benefits of Debt Settlement Services

  • Your balances get reduced to a fraction of the total owed.
  • You are set-up with one comfortable monthly payment, no matter how many creditors you have.
  • Pay-off all accounts in 24-42 months on average (minimum program contract is 12 months)
  • Avoid bankruptcy – and settlement makes it easier to recover than what bankruptcy does to a person’s financial health and future.

A Licensed Debt Management Company Offering Settlement Services Since 2004 

Licensed Debt Settlement Company Offering Services since 2004

Talk to an IAPDA Certified Debt Settlement Counselor Toll-Free at (866) 376-9846

How does a debt settlement service work? See infographic explanation!

Before deciding on a debt negotiation program to get out of debt, consider all of your debt relief options. Here is a summary of all your debt relief options:

Debt Settlement Program Downsides

  • Can lower credit score, and leave late marks and collection accounts on the credit report. As accounts are settled and “paid off,” one by one, credit scores can improve. Consider a Validation Program before using settlement services because you can end up paying less money to resolve all accounts and potentially get the derogatory notations removed from credit reports. 
  • Creditors can issue you a summons, but if this does occur, we have debt arbitrators trained on how to settle a summons before the court date. A judge from Brooklyn recently released a report that illustrated 90% of these credit card judgments being inaccurate and flawed and stating that they could be dismissed!
  • Creditors will charge late fees and interest so that balances will increase over the program’s first year. We consider this when providing you an estimated savings quote.
  • Not all clients will graduate from the program due to insufficient income and other reasons.
  • Creditors may not agree to settle. 

After getting approved for a debt settlement service:

You will get set up with a single and affordable monthly payment – whether you have one or five unsecured debts that need to be settled. Even though your creditors are not paid each month – your single monthly payment plan will account for all of your accounts. 

Each month as you make the payment, the funds will be accumulating in your FDIC Insured Trust Account. When enough funds accumulate – negotiations begin. One by one, your accounts will be negotiated down and settled (paid off). Before the creditor is paid – you must approve the settlement or reject it. You have full control of your program. Typically, settlements are only a fraction of the total balance owed, but results do vary. 

  • Once approved for the program, all of your creditors will be contacted and informed that you are in the plan. Since you will be represented by a law firm, creditors will have to direct all communication to the law firm.
  • Your reduced monthly payments will start. One payment every month. 
  • If your creditors have any questions, they will be directed to contact your team of negotiators that we set you up with. 
  • As soon as your creditor agrees to lower the balance, we immediately send you the “written offer” to review. If you approve it, the funds are released from your trust account and paid to the creditor.
  • One by one each collection account is negotiated down and resolved. 

How to Find Out if you qualify for a Debt Settlement Program?

STEP ONE:

Our IAPDA Certified Specialists will quote you on a monthly payment based on what creditors you have, the balances on each account, and your budget. (The payment quote is based on thousands of past client results.)

STEP TWO:

If we can reduce your payment to be affordable and want to move forward with the program, you will be sent the paperwork. (We can send the approval paperwork in electronic format so that it’s quick and easy for you to review and sign.)

Will a Debt Settlement Program Definitely Work?

At Golden Financial Services, if the program doesn’t work, you won’t pay a dollar. No fees are earned until results (settlements) are achieved and completed. Golden Financial Services has been in business since 2004. We have very few customer complaints, many awards and accreditations, and lots of positive online reviews. Go online and check out our client reviews on your own; that will be your reassurance that these programs do work.

Debt Negotiation Service Fees 

We only earn our fee after each account is settled and paid. Until your debt is settled, our fee is sitting in your trust account and under your control. Fees add up to 17% of the total amount enrolled in the plan. You’re never locked into the program and can cancel at any time. If we don’t perform, we don’t get paid, it’s that simple!

How Much Does a Debt Settlement Service Affect Your Credit Score?

Credit card settlement services require a person to fall behind on monthly payments. Consequently, credit scores will go down. 

You have to ask yourself, is your credit helping you right now? And if so, how? Sometimes, a temporary negative effect on credit scores can be worth saving money and clearing your balances much faster. 

Typically a person’s credit score will go down over the first year of the program. As accounts get paid one by one, debt to income (DTI) ratios may start to improve. The DTI is an important factor that illustrates if you are creditworthy or not. 

Once you finish the program, you can rebuild your credit score by getting new credit and staying current on your future payments. 

If you don’t want your credit score to be negatively affected, it’s important to explore all of your options before deciding on a credit card negotiation program. Consider using this free snowball calculator if you prefer not to use a program. 

Program Qualification Guidelines 

1. Must have a financial hardship of barely able to afford minimum payments

2. Must owe $7,500 or more 

3. All states qualify, but there are state guidelines that must be abided by

Talk to an IAPDA Certified Counselor Toll-Free at (866) 376-9846

How to Find a Legitimate Debt Settlement Company 

Follow These 12 RULES that all the best debt settlement companies have in common:

    1.  Only sign up with a company that has been in business for five years or longer. Make sure they have a proven track record and a sufficient volume of clients, which would require them to be in business for at least five years. And don’t just take their word for it; actually, look up their time in business at either the BBB or Secretary of State website. 
    2. What is their plan of action if your creditors issue a lawsuit? Make sure the debt settlement agency has “lawsuit and legal defense” included in the program. The company should clearly explain that there is a chance you could get sued while on the plan. And if you are served with a credit card summons, how will it be dealt with? The best debt settlement companies will be very transparent about this subject upfront. 
    3. Make sure the company has an A+ Rating with the Better Business Bureau.
    4. The program should last for no more than 48 months. A debt negotiation company should not offer consumers a six or seven-year plan (RED FLAG). Services should last for at the most four to five years. 
    5. Debt arbitration companies should only collect settlement fees after accounts are “paid off” and not upfront. (a performance-based fee)
    6. What kind of customer service do they have? You want to be able to call in and speak with an experienced customer service representative or legal assistant when you have questions about your settlements or plan. Call-in frequently after you sign up for the program, and make sure you can talk to an agent with ease. You can cancel the program immediately if you sense the company only has one or two employees working.
    7. In the 1st 30 days of the program, your creditors should be contacted, and you should receive instructions on how to access your account online. The company should provide you a welcoming package and a welcoming phone call to go over your welcoming package and any questions that you may have. The company should educate you on handling creditor phone calls, sending collection letters when you receive them, and educating you on your consumer rights. If you don’t get any correspondence or attention during those first 30 days, cancel. And most importantly, the company should go over all of the potential downsides of the program to be sure that you understand them and how a potential downside would get resolved if it was to occur. 
    8. The company should have ZERO UNRESOLVED BBB COMPLAINTS. It’s acceptable to have a few complaints as long as they are resolved. There should be no government action listed against a company which can be found on their BBB profile page. 
    9. Check online at Google and Yelp for customer reviews. Never sign up with a company that has lots of negative reviews across the internet. Golden Financial Services was rated Top Debt Relief Company for 2021. 
    10. The company should have experienced counselors on the frontline that explain all options to consumers before enrolling them in a program. Consumers should get to pick from multiple options. 
    11. The best consolidation companies provide clients with financial education while on the program. (Click Here to Learn how this Program Affects your Credit)
    12. Make sure before you join a credit card relief, consolidation, or debt settlement service that they are IAPDA certified and accredited or non-profit, A+BBB rated, and a licensed debt management company.

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Call Today or Visit us Online “,”articleBody”:”Debt settlement services can help you pay off almost any type of unsecured debt. A debt settlement program acts as a liaison between you and your creditors. The program’s negotiators work out the settlement on your behalf, getting your balances reduced. You only pay a small fraction of the total balance owed on each unsecured debt, including fees and interest. Debt settlement makes – ‘debt’ – affordable! A debt settlement company will first do a budget analysis to determine what a comfortable monthly payment would be for you. The payments are flexible and designed to fit almost any type of budget. Your creditors are not paid out of your monthly payment. Your monthly payment gets deposited into a trust account, that you control. In your trust account is where the funds will start to accumulate for settlements. This is an FDIC insured account, where your funds are safe and out of reach for your creditors! As your funds accumulate, the debt settlement negotiators go to action. One by one your debts will get settled and paid off, and before you know it – you’ll be debt free. At Golden Financial Services our debt experts are Certified by the International Association of Professional Debt Arbitrators (IAPDA). We’ve been settling debt since 2004 and have an A+ rating with the Better Business Bureau (BBB). Before diving into a debt settlement program, it’s important to understand the benefits and downsides. The following page will teach you how a debt settlement program works and everything you need to know. Your balances get reduced to a fraction of the total owed You are set-up with one comfortable monthly payment, no matter how many creditors you have Become debt free in 24-42 months Avoid bankruptcy – and debt settlement makes it easier to recover, compared to what bankruptcy does to a person’s financial health and future Talk to an IAPDA Certified Debt Settlement Counselor Toll-Free at (866) 376-9846 How Does a Debt Settlement Program Work? Debt Settlement Program Downsides Can lower credit score, and leave late marks and collection accounts on credit report. As debts are settled and ‘paid off’, one by one, credit scores can improve. Creditors can issue you a summons, but if this does occur, we have debt arbitrators that are trained on how to settle a summons before the court date. A judge from Brooklyn recently released a report that illustrated 90% of these credit card judgments being inaccurate and flawed, and stating that they could potentially be dismissed! Creditors will charge late fees and interest, so balances will increase over the first year of the program. We take this into consideration when providing you an estimated savings quote. Not all clients will graduate the program, due to insufficient income and other reason. Creditors may not agree to settle. To protect you-you only pay if results are achieved. How Does a Debt Settlement Program Work? You will get set up with a single and affordable monthly payment – whether you have one or five unsecured debts that need to be settled. Even though your creditors are not paid each month – your single monthly payment plan will account for all of your debts. Each month as you make the payment the funds will be accumulating in your FDIC Insured Trust Account. When enough funds accumulate – negotiations begin. One by one your debts will be negotiated down and settled (paid off). Before the creditor is paid – you must approve the settlement or reject it. You have full control of your program. Typically – settlements are only a fraction of the total balance owed, but results do vary. During your consultation, we will provide you an estimated monthly payment and savings quote. How to Find Out if you Qualify for a Debt Settlement Program? STEP ONE: Our IAPDA Certified Specialists will quote you on a monthly payment based on what creditors you have, the balances on each account and your budget. (The payment quote is based on thousand’s of past client results.) STEP TWO: If we can reduce your payment to be affordable, and you want to move forward with the program, you will be sent the paperwork. (We can send the approval paperwork in electronic format so that it’s quick and easy for you to review and sign.) After 14-years of offering this program, we have it fine-tuned so that it’s easy for our clients to get approved. Will a Debt Settlement Program Definitely Work? At Golden Financial Services if the program doesn’t work, you won’t pay a dollar. No fees are earned until results (settlements) are achieved and completed. Golden Financial Services has been in business since 2004. We have no customer complaints, many awards and accreditations, and lots of positive online reviews. Go online and check out our client reviews on your own, that will be your reassurance that these programs do work. What Happens After I Get Approved for a Debt Settlement Program? Once approved for the program; all of your creditors will be contacted and informed that you are in the plan. Your reduced monthly payments will start. If your creditors have any questions, they will be directed to contact your team of negotiators that we set you up with. As soon as your creditor agrees to lower the balance, we immediately send you the ‘written offer’ to review. If you approve it, the funds are released from your trust account and get paid to the creditor. One by one we get your debts reduced and paid off until you are debt free. Debt Settlement Program Fees We only earn our fee after each debt is settled and paid. Until your debt is settled, our fee is sitting in your trust account and under your control. Our debt settlement fees add up to 17% of the total debt that you enroll in the program. You’re never locked into the program and can cancel at any time. If we don’t perform, we don’t get paid — it’s that simple! How Much Does Debt Settlement Affect Your Credit Score? A debt settlement program requires you to fall behind on your monthly payments. If you fall behind on your monthly payments, your credit score goes down. You have to ask yourself; is your credit helping you right now? Or is your debt causing you more harm? Typically a person’s credit score will go down over the first year of the program. As their debts get paid off one by one, clients start to see an improvement in their debt to income ratio. Debt to income ratio is an important factor that illustrates if you are creditworthy or not. Once you finish the program you can rebuild your credit score by getting new credit and staying current on your payments going forward. If you don’t want your credit score to be negatively affected, it’s important to explore all of your debt relief options before deciding on debt settlement. Debt Settlement Program Qualification Guidelines 1. If you can only afford minimum payments or less 2. You must have over $7,500 in total unsecured debt 3. Not all states qualify Talk to an IAPDA Certified Debt Settlement Counselor Toll-Free at (866) 376-9846 How to Find a Legitimate Debt Settlement Company Follow These 12 RULES that all the best debt settlement companies have in common: When obtaining debt settlement help sign up with a debt settlement company that has been in business for 5-PLUS years. Make sure they have a proven track-record and a sufficient volume of clients. And don’t just take their word for it, actually look up their time in business at either their state’s division of corporations website or at BBB.org. What is their plan of action if your creditors issue a lawsuit? Make sure the debt settlement agency has “lawsuit and legal defense” included in the program. Make sure the company has an A+ Rating with the Better Business Bureau. Debt Settlement programs should last for no more than 48 months, but usually, should be completed in less than 3-years. A debt negotiation company should not offer consumers a 6 or 7-year plan (RED FLAG) just to give them a smaller payment. Debt arbitration companies should only collect their debt settlement fee when debts are ‘paid off’, and not up front. (a performance-based fee) What kind of customer service do they have? You want to be able to call in and speak with an experienced customer service representative or legal assistant when you have questions about your settlements or plan. Call-in frequently after you sign up for the program and make sure you can talk to an agent with ease. You can cancel the program immediately if you sense the company only has one or two employees working from home! In the 1st 30 days of the program, your creditors should be contacted, and you should receive instructions on how to access your account online. The company should provide you a welcoming package and a welcoming phone call to go over your welcoming package. The company should educate you on how to handle creditor phone calls, where to send collection letters when you receive them, and education on your consumer rights. If you don’t get any correspondence or attention during those first 30 days, cancel. The debt settlement company should have ZERO UNRESOLVED BBB COMPLAINTS. Check online at Google and Yelp for customer reviews. Do not sign up with a debt relief company that has lots of negative reviews, and only positive reviews on their own websites. The company should have an experienced and IAPDA Certified debt counselor explain all credit card debt relief options to you. The best debt relief companies provide clients with financial education while on the program. (Click Here to Learn how this Program Affects your Credit) Make sure before you join a debt settlement service — that they are IAPDA Members and Accredited. IAPDA stands for ‘International Association for Professional Debt Arbitrators’ — this is ‘school and training’ for debt settlement companies. “}