Our next topic in our Debt Settlement… Simplified Series is just about everyone has on their mind when they are considering a debt settlement program to get out from under their credit cards.

In this series we’re breaking down the in’s and out’s of debt settlement so you can made an informed and educated decision.

Do all Creditors Accept Settlements?

The short answer would have to be no. Not all creditors will be willing to accept a settlement on an account. This is why we conduct a thorough review of your accounts before suggesting the debt settlement program. Through our experience, we have learned how to rule out those difficult lenders ahead of time.

There are a few situations that we can be relatively confident that we will achieve great results for you. Let’s take a look at some of them!

Credit Cards

Over the years we have found that credit card issuers are very frequently willing to accept a settlement on a delinquent account.

We negotiate settlements of almost all of the major credit card companies on a regular basis. This includes the “big banks”, as well as department store cards, gas cards and many online issued credit cards.

Payday Loans

With an average interest rate of 300-400%, it is no surprise that we have a lot of folks looking for assistance with payday loans. Fortunately, they are able to be included in our debt settlement program. There is an extra requirement with these though- you must have made at least three payments on the loan before we can consider it for our program. Don’t worry, we can help you manage their highly-aggressive collection methods.

Medical Bills

While we suggest to first attempt to make a payment arrangement with the medical provider directly, if that is affordable these accounts are eligible for the FaithWorks Financial debt settlement program. These tend to settle at a higher percentage than credit cards, but since they are not interest bearing accounts it just about evens out.

On the flip-side, here are the accounts that are NOT eligible for our Debt Settlement Program

Credit Unions

Credit Unions issue loans at such low interest rates that they are not typically willing to accept a reasonable settlement.

Though we have had success in settling debts with credit unions, our success rates are a bit lower so we generally do not accept these into our program.

Secured Loans

Any type of loan that is tied to an item that can be repossessed in the event of default is considered a secured loan. The most common examples are home and car loans, but any type of loan can be secured if that is how the contract was written.

Since the accounts enrolled in the debt settlement program will fall behind during the process, it would risk your items being repossessed. We don’t want to see that happen, so we don’t accept secured debts.

There are a lot of different loan structures out there and we may have missed a few! Other unsecured loans may also be eligible. If you still aren’t sure if your accounts could qualify, complete the form on the side of your screen for a free consultation!