What Is Debt Settlement?
Debt Settlement (also referred to as debt negotiation, negotiated debt settlement or sometimes incorrectly called debt consolidation) means that your debt is negotiated down to a reduced amount and paid off in a lump sum. In some rare cases, multiple payments are utilized to pay off the debt, settling the account in full. Settlement is one of the most effective choices available to consumers. It’s a great choice if you have more debt than you can pay off in a 2 – 3 year time frame or are experiencing a financial hardship that has you falling behind (or just about to be) on your monthly payments. Why would creditors choose to settle debts rather than simply charge you interest and late fees over and over again? Well, it’s really a matter of dollars and good sense. Creditors know that if you get into such a bad financial position that you can’t pay your monthly payments, not to mention the amount of money consumers pay in interest and promotional fees. Therefore, they are usually very willing to settle for a lower amount, given your specific situation. One of our Debt Specialists will go through a full consultation to see if you can qualify.
Why should I use Commonwealth Law Group to settle my debts as opposed to handling it myself?
Commonwealth Law Group has impeccable relationships with the creditors and collection agencies. You will also receive full legal representation with an attorney in your state for your protection. As well as specializing in FDCPA (fair debt collection practices act) violations to assist in getting you the best settlements possible.
Do I have to include all my debts into a debt settlement program?
No. You may choose which debts you would like to enroll in the program. Your debt consultant will help you decide the best plan of action based on your current financial situation.
Who is holding my money while I’m waiting on a settlement?
Your funds will be held at Global Client Solutions, which is an FDIC insured trust account. This account will be opened in your name with you having ultimate control over its funds. The monies collected in this account get disbursed only at the time a negotiation is reached with the creditor and you agree with the settlement offer.