Get Wise About Your Credit Matters

Dear Credit Lady:
I hear a lot of people talking about Debt Settlement lately, what is Debt Settlement?
Simply Confused

SvonneUnderwood.jpgDear Confused
Debt Settlement is when your creditors agree to accept a lump sum payment for less than the actual balance due. In simple terms, it means your creditors agree to take less.
It is accomplished by negotiating with your creditors. The IRS as well as some creditors, refer to Debt Settlement as Debt Forgiveness, Settlement in Compromise, or a Negotiated Settlement.
Occasionally, a creditor may agree to accept a lesser amount and will allow the settlement to be paid over time, by making monthly payments. This is very rare as most of the time in order to obtain a favorable settlement, it must be paid in full and typically within 10 days of reaching an agreement.
The best settlements occur when cash is available to immediately settle the account. For this reason, most debt settlement programs are based upon your setting aside funds each month so you accrue funds and the Certified Debt Specialist has money to offer your creditors a lump sum settlement.
It is generally in your best interest to settle your debts as quickly as possible. Before obtaining a court judgment, a bill collector generally has only one-way of getting paid: Demand payment by calling you and sending you threatening letters. If you refuse, the collector can’t do much else short of suing you. Once the collector (or creditor) does sue and gets a judgment, however, you can expect more aggressive collections actions:
1) If you have a job, the collector will try to garnish up to 25% of your net wages.
2) The collector also may try to seize any bank or other deposit accounts you have.
3) If you own real property (real estate), the collector will probably record a lien, which will have to be paid when you sell or refinance your property.
In all three cases the collection company most likely will get 100% of their money plus interest and penalties. If possible settle your debts before a judgment is filed.
Please forward your questions to
Call (800) 896-2261 for a Certified Credit Specialist -  Svonne Underwood The Credit Lady or visit our site at