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Debt Settlement is the fastest and least expensive way to get out of debt and improve credit worthiness without filing bankruptcy. So for Debt Reduction Questions for your problems on arbitration, cures we have management experts that can help you. Also known as debt negotiation, debt settlement is not a credit counseling service or a consolidation loan; it is an ambitious approach to debt reduction for those experiencing an overload in debt and who have considered bankruptcy as an option. This practice however, is difficult to handle on your own. Over the years, our arbitrators have established relationships with the many creditors in order to simplify this process. We work diligently with your creditors to reduce your unsecured debt balances down as much as 60% by arbitrating an agreed settlement. Any debt settlement program will have an adverse effect on your credit during the term of the program. This may affect your ability to apply for new credit while your accounts are being settled. Once the debt has been paid off through a settlement program, a client is then free to rebuild a solid credit profile without holding the burden of any outstanding debt.
Our debt counselors will customize a “savings” program tailored to your specific budget and needs. They will guide you in regaining control, provide a relief in your monthly payments, reduce even eliminate those harassing creditor phone calls, and most importantly, assist you to living a stress and debt free lifestyle.
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Our debt settlement services provide you immediate debt relief. Before you consider the negative effects of filing for bankruptcy or signing a contract with another company, speak with one of our IAPDA certified debt specialists. They will guide you through the debt settlement process and evaluate your individual needs. From there, they will analyze your budget to establish an affordable monthly payment plan that will be used specifically to settle with your creditors. Once you have researched our company as well as the many others, you will have more knowledge on "what makes a good debt settlement company" and "how the process works", you can make an educated decision of which company to go with. Most importantly, PDS works for you, not for the creditors. Allow our team of arbitrators to reach a settlement with your creditors which will get you back on the path to a debt free lifestyle.
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When will my debt settlement begin?
Upon receiving your first payment, our arbitrators will immediately go to work by contacting your creditors & debt collectors to inform them that we are now handling your accounts. They will request a validation of your debts to locate any billing inaccuracies & miscalculations on your account. However, we can only settle a debt once all of the funds have accumulated in your settlement account.
Why should I use PDS to settle my debts as opposed to handling it myself?
Our experienced debt arbitrator have established relationships with the creditors & collection agencies. We will be able to negotiate a settlement with the creditors, which are usually averse to negotiating with the consumer directly. Our arbitrators have knowledge in Federal & State consumer laws & exercise the Fair Credit Reporting Act, Fair Credit Billing Act, as well as the Fair Debt Collection Practices Act to help reach a settlement and stop the harassing phone calls.
Will I still receive harassing calls from creditors or collection agents?
In regards to the creditors, they have the right to attempt to collect on the debts owed to them. They will receive several letters from our arbitrators including a debt validation letter and a “cease and desist” letter, which requests that all further communication in reference to your account be directed to them. Often times, creditors will continue to contact you, which is completely legal. However, once your debt is sold to a collection agency, the Fair Debt Collection Practices Act is implemented; meaning that it would be illegal for a collector to harrass you in connection with the collection of any debts. A debt collector may not harass or abuse any person in connection with attempts to collect a debt.
Should I keep paying my credit card bills?
Due to your legitimate financial hardship, you are able to participate in this savings program in order to help pay your debts in the future. We are not here to advise you not to pay your debts now, however if you continue to make payments to your creditors, there may be less debt or possibly none left at all for us to settle. If you are able to save money into this program & make payments to your creditors at the same time, then you probably don’t actually have a legitimate financial hardship.
How does debt settlement affect my credit score?
Any method used to improve your debt situation other than making scheduled payments to your creditors will negatively affect your score. There are too many unknown variables to predict how much your score will actually decrease, however the intention of this program is to settle your debt, not to improve your score. Once the program is completed & your credit report reflects less debt or none at all, it should be easy to increase your score at that time. We reccommend contacting a credit repair company to assist you with this process.
Will I be penalized if I miss a monthly payment while in the settlement program?
No. Simply call your client support representative and we will work with you to complete the program. It is understandable that circumstances may arise, we will help you get back on track with your payment schedule. We are much more reasonable than your creditors, who unfortunately capitalize on your mistakes. In the event that you will miss a payment, simply notify us 7 days "prior to the billing date" and we will make sure to cancel the payment.
What if my creditors won't settle?
It is extremely rare for a creditor not to settle. Due to the fact that you have a legitimate financial hardship, creditors realize that a settlement is in their best interest. If you file for bankruptcy, they can be left with nothing. Creditors lose billions of dollars per year from consumers filing bankruptcy.
What is the difference between unsecured and secured debt?
Unsecured debt is derived from credit that is extended without the use of collateral. Credit card debt, medical bills, department store card debt, and personal loans are all examples of  unsecured debt. A signature promising to repay the creditor is all that is required to obtain this type of debt. Secured debt is a loan that is tied to something tangible. A mortgage and an auto loan are common examples of secured debt.
How long will it take to settle my debts?
The settlement time on each account will differ depending on the amount of debt in question. Some accounts may take up to 12 months to settle, while others may take much less time depending on the status of the account. Remember, although an agreement may be reached with your creditor in just a few months, the settlement will not take place until the monies are available in your settlement account.
How is debt settlement different from debt consolidation?
Debt settlement is a program that will help you save money to pay your unsecured debts in the future. Debt consolidation, on the other hand, is a program that is designed to simply reduce your interest rates among your creditors. Depending on the amount of debt that you owe, it may literally take decades to clear your name, even with a reduced interest rate. Not to mention, debt consolidation will also adversely affect your credit score.
Who qualifies for a debt settlement program?
A debt settlement program is certainly not for everyone. Qualified candidates are those who have a legitimate financial hardship,
which has caused them to fall behind on their payments to creditors, or will cause them to fall behind in the near future.
Practical Debt Solutions will not welcome anyone into the program that has the intentions of defrauding, deceiving,
or swindling their creditors. We only represent consumers who are truly in need of our services and stand to significantly
improve their financial situation.
Do I have to include all my debts into a debt settlement program?
No. You may choose which debts you would like to enroll in the program. Your debt counselor will help
you decide the best plan of action based on your financial situation and budget.
How is debt settlement different from bankruptcy?
Bankruptcy is an option that is generally treated as a last resort. It will remain on your credit report for 10 years & you can be denied employment, state licenses, insurance, as well as tenancy of an apartment. Most importantly, you can be denied virtually any type of credit with a bankruptcy on your report. In addition, bankruptcy laws have recently changed, it is more difficult to qualify for Chapter 7 (the method of liquidating assets to eliminate your debt). You will not be allowed to discharge alimony, child support, taxes, student loans, judgments, or any loan on the bankruptcy petition. Under Chapter 13 bankruptcy, your debt payments are simply restructured meaning you will still have to pay a percentage of your debts while you suffer the consequences of bankruptcy. Debt settlement is an effective alternative to bankruptcy. It provides a convenient method to save money to help pay your debts in the near future. You’ll be able to restore your credit much quicker through a settlement program.
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