How Does Debt Settlement Work?

Debt settlement companies will negotiate with the creditors on your behalf to settle for a specific amount (in some cases less than the balance owed). In return, the debtor will make one settlement payment or a series of settlement payments for the balance owed depending on each individual program circumstances. Once the debt has been compromised for the agreed upon amount, the creditor will issue a letter to you, the consumer, and report to the credit bureaus that the debt has been "Settled", and/or "Settled for less than full amount."

At Pro Card Care we have found the following to be true about debt settlement services:

“Creditors are usually willing to settle the balance of debt owed if you, the debtor, are under a financial hardship. If you choose to file bankruptcy, then the creditor would receive nothing, therefore, it is their desire to get some payment towards the balance owed.