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1. Lump sum debt settlement – Assuming the program is
successfully completed and all the accounts in the program are
settled, this is the fastest debt relief option available to
consumers (outside of bankruptcy) and what Franklin Debt Relief
specializes in. To better understand how it works, consider this
example: Jim owes $10,000 on a credit card and he is already behind
on his payments (accounts that are current cannot be settled). He
wants to pay off the full balance, but he only has $5,000 available
for payment. Jim contacts Franklin Debt Relief to negotiate with the
credit card company. FDR negotiates with his creditor on his behalf
to come to an agreement where he pays a lump sum of money for less
than the balance to satisfy the debt. In this situation, Jim pays
them a lump sum of $5,000 and $1,500 to FDR in fees. In turn, they
clear the entire debt and report to the credit bureaus that Jim’s
debt was “settled”. This process typically usually takes between 4
and 12 months to complete.
2. Debt Settlement - This is another
rapid debt reduction
option available to consumers, but it takes longer than the scenario
described above because there is not a lump sum available to speed
up the process. Instead a client makes a set monthly payment each
month, part of which goes to our fees and the rest goes into a
savings account, of which the funds will be used to settle the
client’s unsecured accounts. Once enough funds have accumulated and
assuming a creditor has agreed to a sufficient settlement, they are
paid with the money from the savings account. This process normally
takes between 24 and 60 months to complete assuming the client
manages to complete the program, or almost one-tenth the amount of
time it takes to become debt free when paying the minimums on 19%
interest credit cards.
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