DebtQuest
Talk To A Representative Now: 800-736-0660
October 16, 2019
How Does Debt Settlement Work?

How Does Debt Settlement Work?

Wondering How Does Debt Settlement Work? Here’s The Basics

Are you struggling to pay off a large sum of debt? Do you feel like you will never get rid of your debt? Feeling overwhelmed by the amount of debt you owe?

If you are one of the thousands of Americans who feel overwhelmed by debt, the first thing you need to know is that you aren’t alone. While debt is never a fun thing to deal with, it’s important to realize that you have people and resources available to help you find a solution and make a plan to be able to focus on future success rather than current struggles.

Debt settlement is a popular strategy that many consumers find helpful to manage their debt and get it under control. Debt settlement is a strategy where you are allowed to pay a lump sum of your debt to help ‘settle’ the debt. This is negotiated with creditors by a third-party company (like DebtQuest USA).

Debt settlement sounds simple enough, but obviously the process is not child’s play. It requires plenty of research, negotiation, and strategy to get to the final arrangement. It is not something we would recommend doing on your own as it can be a complex process working with multiple loans, creditors, and points of contact. We’ve been doing this for thousands of Americans over the years, securing millions of dollars in debt and saving countless sleepless nights. We know how to work with banks and creditors to help get you the best deal possible.

So, what does the process look like?

Debt settlement has a few core parts to the process that are important to understand.

  1. The first part of debt settlement involves talking to a debt relief company like us. We will walk you through your specific situation, ask questions, and answer questions about your options. We then will walk through our recommendations based on your unique situation. From there, we’ll get the necessary permissions from you to speak on your behalf to the banks and creditors.
  2. Once we get the approval, we will dive into your statements and accounts and start negotiating with the banks and creditors who hold your loans. We will be working with them to negotiate a set amount that can be paid on that loan in order to “fulfill” it, even if that number is not the full amount originally owed. This does take some time and may take many months depending on the level of complexity to your own situation.
  3. While we are working on your debt settlement, you will still need to pay into an account that is administered by a third party. This is an account that will help you pay toward that lump sum payment that is eventually decided upon. Depending on your situation, you may also be advised to stop paying the creditors until an agreement has been arranged.
  4. Once we’ve come to an agreement with your creditors, you’ll need to pay out the lump sum amount that has been negotiated. Once this is paid, you will not need to deal with the creditors again.
  5. You’ll pay a fee for the debt relief and negotiation work and at this point, payments for this will start to kick in.
Debt Settlement can be a great option for you if you simply feel you are drowning in your current debt situation. Debt settlement is often an involved process, taking time and focusing on many moving parts. It may affect your credit score as well, as you walk through the process. Debt settlement also still requires that you pay out a portion of your overall debt, though that amount could be less than what you originally owed. While not a perfect option for all, it can be a great option for so many people!
We’d love to be a solution for you and be able to provide sound advice. At DebtQuest USA, we are here to provide sound education and information, as well as help you once you make a decision on which debt management strategy is right for you. We can work with you from start to finish, helping you find financial freedom and start working toward the goals you have in life!
Debt Settlement Is Your Start To A Debt Free Future
Contact US
Related articles
23 May 2019
Debt Relief – Options for Getting out of Debt
Table of Contents: Options for Getting out of Debt Many Options ... Read More
16 July 2019
How Long Does Bankruptcy Stay on Your Credit?
Table of Contents: How Long Does Bankruptcy Stay on Your Credit? ... Read More
20 October 2019
10 Best Apps for Personal Budgeting
Table of Contents: 10 Best Apps for Personal Budgeting How to ... Read More

How Much Can You Save?

How much debt do you owe?

$1

$100k+

What is your desired
monthly program deposit?

$1

$5000

Debt Quest Debt Settlement

$500

Your monthly
program deposit

$5,750 Savings

Your Savings

39 months to pay off your
current debt listed above.

Your monthly program deposit:
$500

Your Savings:
$5,750 Savings

39 months to pay off your
current debt listed above.


Debt Consolidation or Credit Counseling

$500

Your monthly
payment

You pay $14,478 more

No Savings

79 months* to pay off your
current debt listed above.

*Assumed average interest of 15%

Your monthly Payment:
$955

No Savings:
You pay $14,478 more .

36 months to pay off your
current debt listed above.

*Assumed average interest of 15%


Paying Minimum Monthly Payments

$500

Your monthly
payment

You'll Pay $29,199 More than you owe currently

No Savings

9 years* to pay off your current debt listed above.

*Assumed average interest of 20%

Your monthly Payment:
$500

No Savings:
You'll Pay $29,199 More than you owe currently.

32 years* to pay off your current debt listed above.

*Assumed average interest of 20%

We know what we are doing
Check our licenses
DebtQuest USA, LLC BBB Business Review