What To Expect Throughout The Debt Settlement Process

By Author: David.Green
Total Articles: 20
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When looking for practical solutions to reducing unsecured debt, you need an answer that resolves your debt in the quickest amount of time and saves you money. You need a plan that will help you resolve your current financial crisis and rebuild strong financial health. This is why thousands of Americans each year choose a debt settlement program. If you are considering enrollment in a debt settlement program, here is what to expect throughout the debt settlement process:

Step 1: Assemble Documentation

Before you enroll in a debt settlement program, you will need to have the most recent statements for each account that will be included. Credit card debt, medical and hospital bill debt, business loan debt, personal loans, utility bills, department store credit cards and generally any debt that is unsecured can be settled using this process.

Secured debt such as student loans, auto financing or mortgages are not eligible for a debt settlement program. You will also need to know the details of your monthly expenses to help build an individualized budget plan. When selecting the accounts you wish to include, ...
... it is important to remember that most debt settlement programs require a minimum of two accounts to enroll and at least $12,000 in unsecured debt.

Step 2: Schedule a Free Consultation

Most debt settlement companies offer a free consultation. This initial consultation provides an excellent opportunity for your questions to be answered and to understand in further detail what to expect during the process. During your free consultation, a debt advisor will outline your debt settlement options and advise you on how best to eliminate your debt. Once this has been established, you are ready to enroll in the debt settlement program.
Step 3: Enroll in the Debt Settlement Program

To enroll in a debt settlement program, you must first sign a power of attorney to authorize the debt settlement company to negotiate with your creditors. During the debt settlement process, you will make a monthly deposit into a settlement account. It is important to create a monthly budget to ensure that you will be able to make this monthly deposit and to track expenses.
Step 4: Set up a Settlement Account

In order to work with a debt settlement company, you need to deposit monthly savings into an account that builds up over a period of time. The company will use funds collected in this account to repay your debts. A legitimate company will use an FDIC insured trust account. Once enough funds are built up, the negotiation process can begin with each creditor.

Step 5: The Negotiation Process

The debt settlement company will contact your creditors and inform them that you are now being represented. This helps minimize or eliminate creditor calls. The standard practice is for your creditors to communicate with the debt settlement company that is representing you. The debt settlement company will negotiate with your creditors to lower the amounts you owe them.

Located north of Dallas, Greenshield Financial Services is a qualified debt settlement company with certified debt arbitrators who follow the highest standard of professional conduct as designated by the International Association of Professional Debt Arbitrators (IAPDA). Greenshield's mission is to guide clients toward a debt-free life by helping relieve concerns, resolve debt, and rebuild strong financial health, both now and in the future. Part of the company's world-class customer service includes providing financial education and savings guidelines for consumers to deploy immediately and in the future, when professional debt settlement is no longer needed. Visit www.greenshieldfs.com today to schedule your free consultation.

Heather Preston debt settlement program - Green Shield Financial Services is a Financial Health Management Company that specializes in a debt settlement program as alternatives to debt relief, debt help, and bankruptcy to help you learn how to get out of debt.