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Why Debt Settlement  Works
Call Today: (877) 274-1260
If you successfully complete our program, it’s possible that you’ll enjoy these benefits:
Settle your debts for less than you owe
  (read here for full details about how much you can expect to save)
Resolve your unsecured debts in 18 to 60 months
  (read here for full details on how long our program lasts)
No Up Front Fees - Don't Pay Till You See Results!
 
 
 
Understanding Why Debt Settlement and Debt Negotiation Work

Many consumers find themselves in debt without a sufficient plan to pay off their creditors in the near future and preserve their credit score. Choosing the best debt relief option certainly depends on the individual’s situation- who they owe, how much they owe, and what they can afford. And, while all of the traditional debt relief options have proven successful for some individuals, debt settlement is definitely worth considering if you are facing a financial hardship. For many consumers, the trials and tribulations that come along with owing money are severe. FDR’s goal is to relieve you of the stress that your debt is causing you to feel and get you started on a life free of debt obligations.

Although not every account settles and not every client completes the program, but when successful, here’s why debt settlement works:

1) Our clients could potentially file for bankruptcy. For creditors, a client filing Chapter 7 bankruptcy typically means that they will not see a single dollar of the money you owe them unless the client has non-exempt assets that will be liquidated if they file. For those who file for Chapter 13 bankruptcy, which sets the consumer up on an installment plan, there is a high likelihood that the client can not make those monthly payments and fails to complete the plan. This being the case, why wouldn’t the creditor settle for half of what you owe, guaranteeing them at least a portion of the owed amount? It makes perfect sense for a creditor to negotiate and settle in light of these factors.

2) For the creditor, there is always the threat of the client not having the income to pay off their debts. This is particularly true for clients who are suffering from a particular hardship that prevents them from generating the financial means to make their payments. In many cases, the creditors are understanding of these hardships and are therefore willing to negotiate and reach a reasonable settlement that the client can afford.

3) If the original creditor a client owes feels as though they will not be able to collect the money, they will typically pass on your debt to a collection agency. While these agencies may appear to be a threatening opponent, it can actually help the negotiation process. Essentially, the collection agencies are funded by the credit companies, meaning they only receive a percentage of the settlement agreed upon. If there is any risk at all of a client not having the ability to make their payments, they have to settle- or they won’t get paid.

4) Another option original creditor’s have when they feel they can not collect on a client’s debt is to sell your debt to “bad debt buyers.” Ultimately, they buy the debt from the creditor for pennies on the dollar. What this means is that our negotiators have the ability to reach really low settlements with the debt buyers. Consider this situation- a bad debt buyer purchases a debt from a creditor for 12% of what you owe, and then reaches a settlement with our negotiators for only 40% of your debt- the bad debt buyers still see a huge profit, and you save a large amount of money.

The four reasons that I have just outlined should illuminate why debt settlement and negotiation is an effective debt relief strategy. Keep in mind that our professional negotiators handle your accounts one at a time and are focused on targeting the lowest settlement that could be reached.

 
 
 
 
 

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