How Does Debt Settlement Work?

Debt settlement works by negotiating with your creditors to accept less than the full amount you owe. Let’s take a closer look at the steps involved in settling unsecured debts.

Before enrolling in a debt settlement program like ClearOne Advantage, you’ll  meet with a Certified Debt Specialist who will learn about your situation. Together, you’ll create a plan with an affordable monthly payment to resolve your debt as quickly as possible. Your debt analysis will take into account what you owe, your expenses, and your income so that your program payment is an amount that you can realistically afford every month.

A Step-by-Step View of the Debt Settlement Process

Step 1:

Enrollment in ClearOne Advantage’s debt settlement plan

Your Certified Debt Specialist will outline your personalized plan in your enrollment documents which will be emailed to you for your approval. Any additional questions that you may have will be answered before completing your enrollment.

Step 2:

Make Your First Monthly Payment into the Program

You will make the agreed-upon program payment into an FDIC-insured savings account that is in your name which can be 40% less than the normal monthly payments you are making to your individual creditors.

Step 3:

Approve Your Settlements

Once sufficient funds have accumulated, ClearOne Advantage will begin to negotiate with your creditors on your behalf.

• For example, if you have $20,000 in credit card debt, the goal would be to get your creditor to agree to accept less than that, possibly $10,000, and consider your debt settled.
• Once a settlement is negotiated with your creditor, you will need to approve the terms before it goes into effect.
• Typically, you could end up paying creditors less than 75% of what you previously owed, even accounting for fees.

Step 4:

Graduate and Move Forward

Once all enrolled debts have been resolved, you will “graduate” the ClearOne Advantage program. You can stop worrying about debt and focus on the things that matter most to you.

Is Debt Settlement a Good Option For You?

If your current debt situation is causing you stress and you’re concerned about your financial future, a ClearOne Advantage Debt Settlement Plan can help faster than you thought was possible.

We know that finding relief from debt and taking back control of your financial life requires both determination and commitment from you. However, our clients’ past success has proven that you can conquer your debt if you are willing to do the following:

• Make a consistent monthly plan payment - usually 40% less than the creditor minimum
• Establish a reasonable spending plan
• Avoid unnecessary impulse purchases
• Create an emergency savings account for any unexpected expenses 

How to Be Successful in a Debt Settlement Program

Along with the simple steps involved in setting up your ClearOne Advantage debt settlement plan, here are a few tips that will help you along your debt relief journey.

• Remember, this is not a quick and easy process. You did not get into debt overnight and you will not get out overnight either. The negotiation process can take time, but typically we can resolve your enrolled debts between 24 and 51 months. We typically see a client’s first account settled in their first three months on the program.
• We will customize your plan to come up with a monthly payment that fits your budget, but keep in mind that the more money you accumulate in your FDIC-insured savings account, the faster that we can negotiate your debts. Extra payments can speed up your program and deliver faster results.
• If you stop paying your creditors, your credit rating is likely to suffer. However, when you complete the program you will have significantly less debt. This favorable debt to income ratio will provide you with a positive foundation for you to begin rebuilding your credit.

ClearOne Advantage Is Here to Help

Getting out of debt is not impossible and it does not have to be complicated. Contact a ClearOne Advantage Certified Debt Specialist today to get your personalized debt relief plan.