Through out the years we have established contacts with all the major banks, collection agencies and collection attorney's. Debt settlement is a tool utilized by the collection industry. In different phases of the collection process we have set guidelines and parameters where agencies will settle at a lower percent than in other instances. Such as if more than 33% of your balance was a cash advance it will be difficult to obtain a lower settlement than if the balance were actual charges. There are a few creditors that will not settle or negotiate unless there is strict financial hardship.

Creditors will say almost anything necessary to collect a delinquent account. It cost money to sue someone and a legal judgment is simply a piece of paper unless there is a way to obtain payment for the judgment. The threat of litigation, is an all too common form of intimation on behalf of the creditors collections efforts. They use scare tactics to be able to obtain payment on pass due accounts. There is a possibility that a law suit will be brought against you. However most creditors would rather work things out and negotiate than to spend more money taking a customer to court (and there is no guarantee of collecting a penny on a judgment). That is why so many settlement companies are settling thousands of accounts and savings thousands of dollars. Creditor find it easier to get something than nothing.

Secured debt, I.R.S debt, Personal debt (debt between to private parties), Home Mortgages, Utility Bills, Auto Loans, Government Loans, Student loans, and Federal and State tax are some of the types of debts that can not be included. Some of these accounts may be unsecured, but because they are government backed or affiliated they will not be able to be put into the program.

In Credit counseling you repay the complete balance, plus interest and any fees associated with the account. Where as in debt settlement you only pay back a portion of your debt. That is why debt settlement is a much faster approach to becoming debt free. This means less money comes out of your pocket which provides you more cash flow to allow you to catch up on your every day expenses. Credit counseling only work with clients that are in "good standings" with there creditors, if an account is charged off, it will not be eligible to be enrolled in here program. Debt Settlement accepts charged off accounts.