Free Debt Relief Analysis

Discover how much you can save every month. It's Fast, Free and there's absolutely No Obligation. Fill out the form to get your free savings estimate now.

It's Simple To Start

Gather Basic Information

Answer a couple of basic questions about your debt. Based on your location, debt amount and type of debt, we can recommend a path.

Financial Coaches

Your certified debt resolution specialist will show you how to pay off your debt and give you the motivation to get there.

Debt Free

Follow the payment plan you agree to with your certified specialist and you are on the way to being debt free in less time and for less money than if you did it on your own.

Questions? Call IMG 888-997-5113

Debt Settlement

Those that are facing the threat of bankruptcy may find debt settlement to be a more desirable option. In a debt settlement program your credit counseling agency will negotiate with creditors to get your debt settled for less than the amount owed. While they do so, instead of sending monthly payments to creditors the payments will be held in a secured account and then used to pay off the settlement.


Because debt settlement can negatively affect your credit score this option is not recommended for everyone. Debt settlement is generally suggested only for those with significant debt that they can’t afford to pay off in full.


Learn more about the Pros and Cons of debt settlement before you make any financial decisions.


Debt Settlement Plan Pros


The most obvious benefit is that you can greatly reduce the amount of debt owed. With debt settlement, you are attempting to negotiate with your creditors to pay a reduced amount, usually in a lump sum payment. This 'settlement' amount usually ranges from .20 to .50 cents on the dollar.


If your debt settlement is offered as a legal service through a law firm this is a definite benefit. This will provide you with legal protection if creditors attempt to bring a lawsuit against you.


Other debt settlement pros include:



  • Debt settlement doesn’t affect your credit as much as the alternative of bankruptcy.

  • Debt is usually settled within 3-5 years.

  • Flexible payment options.


Debt Settlement Plan Cons


During the debt settlement negotiation period your accounts are still active and your creditors still expect you to make monthly payments. This can lead to an increase in collection activity, fees and your debt balance.


Debt settlement is risky and can lead to a lawsuit because payments are not being made on the accounts. Making sure you know what you are doing and having a professional with legal experience in the field representing you will greatly reduce this risk.


If you are sued, your assets or earnings may be involved in a judgment against you if you lose. This can put your home and other secured debt at risk.


Be Careful of 'debt settlement companies' who will not provide legal aid if you end up being sued.


Other cons include:



  • Not paying off debt in full

  • Possible negative impact to credit profile

  • May possibly have to pay taxes on debt you didn’t pay in full


 

Benefits of Debt Consolidation