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Debt settlement involves negotiating with a creditor to eliminate a percentage of your debt at an agreed upon settlement amount. Debt settlement companies traditionally employ negotiation strategies to help settle your debts. The most important part of debt settlement is to complete the settlement process with your creditors and or collection agencies. During the settlement process, you will make a monthly deposit into a "special purpose savings account" that will eventually be used for your debt repayment. As funds begin to accumulate in the account, First Source Financial Management will start to negotiate with your creditors. Once a debt settlement offer has been agreed upon, funds from your "special purpose savings account" will be sent to the creditor. Once the payment has been made, that debt is considered settled in full. You will no longer owe anything on that debt and the account will be closed.
Why do creditors work with Debt Settlement Firms?
Creditors know that roughly 30% of the 1.5 million bankruptcies that occurred last year were on debt that was reasonably current and should NOT have taken place. Traditionally, people survive by borrowing from one creditor to pay another. However, this process eventually fails when consumers run out of available credit lines and find themselves unable to make their minimum monthly payments.
If a consumer files for bankruptcy, it is very likely that the creditor will receive nothing of the balance that is owed to them. Therefore, a creditor is better off negotiating with a debt settlement company. Our debt settlement company works with customers that have legitimate financial problems and honestly need assistance or has some type of hardship.
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 One Low Payment
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Professional Negotiations
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Reduction in Debt
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Avoid Bankruptcy
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*Anyone considering bankruptcy should contact a bankruptcy attorney
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