Debt settlement is a form of debt relief, also referred to as debt resolution, debt negotiation, and sometimes debt arbitration. This method resolves your unsecured debt by negotiating with creditors to reduce the amount you owe. Your success is highly dependent on the quality of services you receive which varies greatly by the company you choose. Since Affordable Debt Consolidation provides debt relief exclusively to Texans, our goal is to do it much better and much less expensive than other companies. Typically our negotiation fees are 20 to 40% less.
To be successful, you stop paying your creditors monthly and start saving money in a special purpose account. Once enough money is saved, a new payoff is negotiated for the lowest amount possible, and funds are transferred from this special account to pay the settlement. This process repeats until all debts are resolved with a zero balance.