Debt negotiation differs greatly from credit counseling and DMPs.  That’s why many states have laws regulating debt negotiation companies and the services they offer.  With our services, you can pay up to 40% less if you are able to make lump sum debt payments. Contact us for more info.

Debt Management Plans:  If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan (DMP).

What is Debt Settlement?

The terms “ debt settlement “, “ debt negotiation ” and “ debt arbitration ” all refer to the same thing: that you reach an agreement with a creditor to accept less than full payment on a debt to pay it off in full. Typically, a creditor will only accept a lump sum payment as a settlement. The discount they give you is in exchange for a lump sum of money as opposed to collecting the debt from you over time. You are then released from further obligation on that debt. The primary feature of debt settlement is that you eliminate debt at a discount.

Debt settlement is not the same thing as “debt consolidation.” Debt consolidation occurs when you lump two or more of your debts together (consolidate them) and make one payment on the debt instead of multiple payments. Bank consolidation loans are rare without excellent credit or some collateral such as your home. More common, is what is referred to as “consumer credit counseling,” where you make one payment to the credit counseling company, and they divide it up among your creditors in some way. With debt consolidation, you pay full value on the debt, plus interest (which may be reduced).

Steve Craig is a Colorado Debt Settlement Attorney
who in his capacity as a lawyer, has counseled thousands of individuals regarding their debt load.

His law firm has successfully filed over 2000 bankruptcies and has helped hundreds more with other alternatives.  He is familiar with all aspects of the debt collection process, and therefore, we give you a straight and honest answer on the alternatives available to you.