How does Debt Settlement Work?
As Debt Negotiation Experts we generally are more successful at negotiating a settlement discount. That is because we already have established relationships with your Credit Providers. That is especially true when you have a number of Credit Providers involved. It's time consuming and so most consumers give up and pay what is due without reaping the rewards that the discount will offer.
Use a Debt Negotiation Expert to Settle Your Debt
We have the experience to know how each Credit Provider works, when they are ready to settle and also what they willing to settle for.
Debt that is up to date:
We will contact your Credit Providers and negotiate a discount structure on your behalf. The credit providers will generally agree to 10-20% discounts.
Debt that is handed over to a collection agency:
Collection agencies typically will not grant discounts if debt has been handed over recently. In this case we suggest making a suitable payment arrangement and make that payment for 6 months. The lump sum can be paid into our Trust Account while this occurs to stop you from spending it. Once the 6 months are up, collection agencies will generally consider a 25% -50% discount.
Save Money with Debt Settlement
A lump sum of money is paid to settle debt earlier than the original contractual agreement. This lump sum can come from a pension pay out, inheritance, retrenchment package or bonus.
By doing this you not only benefit from the future interest that you would have paid, but also from potential discounts that Credit Providers will grant you for settling the debt earlier.
The Advantages of Debt Settlement become clearer when you compare total outstanding debt and the costs involved in paying off that debt under your normal contractual agreements.
When you also consider all the interest you would have paid your Credit Providers and the number of the years it would have taken to pay that debt off, the savings from Debt Settlement increase exponentially.
The Cost of Debt Settlement is fixed
There are no upfront costs involved with Debt Settlement. You only pay once the debt is settled.
We charge 3% of the discounted amount.
You currently owe R100,000.00.
We are able to obtain a R20,000.00 discount.
We will charge you R600.00.
What does that include:
The 3% includes all costs.
Paid up Letter
The settlement is paid by you directly to the Credit Provider or Collection Agency that agrees to the discount.
For debt that has recently been handed to a Collection Agency, we suggest paying the Debt Settlement into our Trust Account. We will pay this to the Collection Agency once they agree on a settlement amount. This can take up to 6 months. They do not usually grant discounts immediately.
For the duration of the 6 months we will only pay the installment arrangement that is agreed to on a month by month basis.
More Money in Your Pocket with Debt Settlement
Paying off debt for less than what you owe benefits your pocket.
Debt Settlement will also save you money on the future interest that would have been charged on that debt if you were still paying it off.
Here are other benefits of Debt Settlement:
Reducing your total debt
Getting out of debt faster
Discounts on the money you owe.
Savings on the future interest you would have paid.
Discount can be used for savings or investment.
Take away the stress of dealing with Credit Providers yourself.