How Debt Settlement Works In 2024

How debt settlement companies work and whats the debt relief process? The companies charge a feed based on enrolled debt, and settle your accounts when the accounts are often behind.

Understand how debt settlement companies work and the debt settlement process including the escrow bank account, how the settlement process works, how your credit score may be affected, and how you rebuild your credit after debt settlement graduation.

If you are settling debt on your own, check out our video covering how to negotiate directly with creditors:

Chapters:
0:00 Intro
1:13 How Debt Settlement Companies Work
4:03 Day-to-Day Life in Debt Settlement Process
9:03 Credit Score and Credit Report Impact
11:13 Graduation and Rebuilding Credit Report
11:41 Conclusion

#debt #debtrelief #debtfreejourney

[AscendFinance]

If you have any questions, feel free to give us a call at 833-272-3631!

[matthewfionda]

You should include 1099s as well in a future video. People settle debts and then wonder why they got a 1099 for the amount forgiven.

[Mike_The_Hog_A_Nator]

I'm Disabled & have $13k in Credit Cards. 10 low credit amount cards to be exact.
They are all almost topped out, however, ive never been late in the 2yrs I've had my Cards. I just cant get ahead. I have a perfect payment history but, at 29.9% im not catching up.
The debt settlement company told me that if i enrolled, i would pay around $265 a month for 36 months, zero interest for a total of a bit over $4000 dollars. He said the law firm would handle everything & they would send out letters to all the card companies.
He did say, most do not reply to this letter.
Then they handle everything & it wouldn't effect my credit but its tanked anyway.
It sounds like a scam but I'm leaning 50/50 towards doing this.

[halysworld]

I received an assignment for debt settlement signing, but did some digging and many signing agents don't accept them, as it can impose some liability in the future.. it seems like the debt settlement is having the notary act as a representative for them, when in fact the notary public is biase to either party and just there to witness and notarize the customer signature.

[Greyskies]

You spoke about fees and such but when I called a Program they said they could lower my total debt by 3, 000 dollars. That’s great right?
And I was definitely leaning toward not doing this because it seems like it would destroy my credit but you say it can be built up again?
Thanks this video helped me feel more comfortable about this process.
And do you recommend any particular Program?

[howardgutman]

I can't speak about specific companies but there have been serious problems in the debt consolidation industry.

1. Is the money specifically allocated for payment. This gentleman suggests a sensible program where a consumer pays say $400 per month, 150 is used for cost and counsel fees, and the remainder for payment. Fine, but not every program works that way. Better confirm that they specifically agreed to allocate a certain amount per month for payment.
2. Skills and disposal of claims It's not so easy. One law requires a debt validation process and some send notices. But failure to comply may not eliminate the debt and a company might just say the debt has been verified or forward a recent statement. The collection lawyers are fairly tough, it's a competitive business where they're measured against one another, so don't count on easy settlements.
3. Complaints Check and see what the company's record is and how they're viewed by other customers.
4. Time Period They may provide a 2 or 3 year program but why? They can contact a bunch of companies at the beginning and try to negotiate settlements if they wished. What happens if you pay for 2 years and find the debts haven't been resolved. So you want to check for tangible progress on resolving claims early in the process, and get out if you're not getting satisfactory answers.
5. Can you do it alone Sometimes you can consider negotiating on your own.
6. Communicate hardship Hardship is a significant issue in many settlements and programs. Give the company information early and again, see if they're able to resolve matters.

[fbicer]

I received a mail that mentioned eligibility for credit card debt forgiveness through our federally regulated debt relief program, half of my credit card balance to be forgiven in California. So my question is what is the disadvantages if I use that debt relief program?
Thanks

[kassie]

How does debt relief program affect loans? I see a lot for credit cards but not a ton on loans. Do you have a video for this?

[CM-jtus]

Most of all my debts are passed charge offs or in collections. Will curadebt be a wise choice?

[eandatoo]

I'm thinking of starting my own debt settlement business to help people manage their debt. Do you have any videos or advice for me on doing that? - Eric

[ultradevon]

If you sign any paper work with these companies, can you back out of it before they start reaching out to the your creditors?

[marleysamonte]

Does it really settle debt though?? I don't have a late payments but starting to feel I am going to be late soon :( should I call settlement company now? and is freedom relief company a good one?

[jdoyle]

I have been curious on this. I have gotten myself and my wife into so much debt its not funny. I've heard according to Dave Ramsey that debt refief isnt good, I want to know more.

[macdolton]

What do you know about Michael Bovee of consumer recovery network?

[LavenderUser]

I would like to negotiate for debt settlement with the creditors, but the loans are not past due long enough. Is it better to pay a portion of the minimum payment than completely missing payments?

[marioarroba]

Good video BUT STUPID IPHONE NOTIFICATIONS

[quickstrike]

My experience debt relief company are only in it for their fees. They do not care about the client or what’s best for the client.

[philipfeder]

Can I get the debt calculator link please

[liliaolsen]

How can I get a HELOC to pay off my debt consolidation when it screwed up my credit score?

[nikan]

Hi Ben, I am helping my grandparents with minimizing credit card debts. They are in a debt relief program as of last year. We are feeling hesitant because the debts we enrolled our gaining interests and late fees. The debt company settles an account- For example, we enrolled a creditor for 1400 but when settled 1800, they settle for 1300... That is scary because we have 10 other creditors accruing and they only settled 3, pending 4 right now. All that to ask,

When interests and late fees accruing for over 3 years on a credit card, how are we not paying more in long run?