Debt Consolidation Loans
Swap several payments for one fixed loan and one due date.
ExploreSettle what you owe for less than the full balance
Settlement negotiates unsecured balances down to an agreed amount. It is often the quickest way out for people who have already fallen behind, and the wrong choice for people who have not.
In plain terms
How debt settlement actually works
Creditors accept settlements because a reduced payment today beats the risk of recovering nothing later. While you are enrolled, you stop paying the enrolled accounts and instead make one monthly deposit into a dedicated account held in your name. Once that account holds enough for a credible offer, our negotiators approach each creditor in turn and work toward a written agreement.
It works, but it has real costs. Accounts become delinquent during the program, your score falls before it recovers, and forgiven amounts above $600 are usually reported to the IRS as income. You hear all of this in the first conversation, because a program abandoned halfway leaves you in a worse position than where you began.
A good fit if
- You owe $7,500 or more in unsecured debt such as cards, medical bills or personal loans.
- You are behind on payments already, or expect to be within a few months.
- Your income covers living costs but not the minimums on every account.
- You would accept a credit setback now rather than carry the balances for years.
- You can commit to one fixed monthly deposit for roughly two to four years.
Probably not right if
- You are current on every account and need your score intact within two years.
- The debt is secured, such as a car loan or mortgage, where the lender can repossess.
- Most of the balance is federal student loans, which have separate relief options.
- A management plan could clear the balances within about three years instead.
Step by step
What happens, in order
- 01
Free assessment
We review every balance, your income and your real monthly surplus. If another route is cheaper for you, we say so, even when we earn nothing from it.
- 02
Build your settlement fund
You open a dedicated account in your own name and make one scheduled deposit a month. We never hold your money.
- 03
Negotiate each account
As the fund grows, negotiators approach creditors in priority order. Every offer comes to you for written approval before any money moves.
- 04
Settle and document
Once you approve, the creditor is paid from your account and confirms in writing that the balance is resolved. We keep copies for your records.
Honest comparison
The upside, and what it costs you
Every route has both. Anyone showing you only the first column is selling something.
| What it gives you | What it costs you |
|---|---|
| Resolves balances for substantially less than face value | Your credit score drops during the program |
| Usually finishes in 24–48 months instead of a decade | Collection calls may continue until each account settles |
| No new borrowing and no collateral at risk | Forgiven amounts over $600 are usually taxable |
| Fees depend on results in most states | No individual creditor is obliged to settle |
What it costs
Fees are a percentage of the enrolled balance. In states that follow the FTC Telemarketing Sales Rule they are charged only after a settlement is agreed and you have made a payment toward it. The assessment is free, there is no enrolment fee, and your monthly deposit stays in your own account.
How long it takes
Most programs run 24 to 48 months. The first settlement usually arrives between month four and month ten, once the fund can support a credible offer. More creditors and larger balances extend the timeline.
Questions
Debt Settlement FAQs
Will debt settlement hurt my credit?
Yes, usually significantly, because enrolled accounts go delinquent while the fund builds. Scores typically start to recover once accounts are reported as settled. If you need your score intact over the next two years, settlement is the wrong tool.
Can a creditor take legal action while I am enrolled?
It can. Enrolment does not remove a creditor's right to pursue a delinquent account, and anyone who says otherwise is misleading you. We prioritise the accounts most likely to escalate.
Is the forgiven amount taxable?
Usually. Creditors report forgiven balances over $600 on Form 1099-C, and the IRS generally treats them as income. Exclusions such as insolvency exist, so speak to a tax professional before accepting a final settlement.
What if I miss deposits into the fund?
The program stalls and your accounts stay delinquent with no settlements in place. If your circumstances change, tell us before a deposit is missed so the plan can be adjusted.
Client reviews
What debt settlement clients said
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