Debt Settlement Program

Debt settlement program is a program to settle debts. Debts usually consist of two types:

• Secured Debt
• Unsecured Debt

A Secured Debt has a collateral associated with it. A home mortgage is a secured debt. Failure to pay the mortgage can result in the creditor taking away the property. A home equity line of credit is also a secured debt. The line of credit is secured by the property and the creditor uses the property as collateral for the debt.

Unsecured Debt

Credit card debts are unsecured debts. There is no security or collateral associated with this debt. However, creditors can come and sue you if you fail to pay the debt.

Debt Settlement Programs

Debt settlement programs are only meant for credit card and other unsecured debts: if you have debts over $10,000 or are having difficulty in managing these debts, you may qualify. For secured debts, a Loan Modification program would be the best option. While many programs are available, it is important to choose the right debt settlement program. Often, debt settlement is the last option before bankruptcy.

A typical program for debt settlement consists of settling the unsecure debt for pennies on the dollar. This debt is negotiated with the creditors on behalf of the borrowers. The borrower typically makes payment into an escrow account to build up cash in the account. The maximum amount a borrower would have to pay is approximately half of the total debt.


The length of the program can vary anywhere from one year to five years. This depends on various factors including the amount of debt a borrower has and the amount of monthly payments he can make in the escrow account. Debt settlement programs are offered by companies that are attorney backed as well as non-attorney backed companies.

We have partnered with the leaders in debt settlement to bring excellent service and value to our clients. To get more information about your eligibility, please fill out the simple application form for a Free debt settlement consultation.

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