Debt Negotiation works by reducing the balance owed (principal) on your unsecured personal debt accounts through the time-honored process of creditor negotiation. This is different from simply reducing the interest rate as with a Debt Management Plan or Consumer Credit Counseling, which do not affect the total debt balance. By reducing the balance itself, Debt Negotiation provides a much faster means of becoming debt-free. Most creditors are willing to accept 50%, 40%, sometimes as low as 20% of the balance owed in order to close out an account rather than lose the entire amount in a bankruptcy proceeding. From a business perspective, it is a matter of the creditor receiving something rather than nothing, as would be the case in most bankruptcies. Of course, different creditors have different policies, but as a rule, discounts of 50% or less are routine in the industry. As a result of this approach, money that was previously wasted on endless minimum payments (most of which went toward interest charges) goes toward reducing the actual debt balance. Debt Negotiation is the fastest debt elimination method short of Chapter 7 bankruptcy.
 

This is not a Debt Consolidation Program or Debt Management Plan/Consumer Credit Counseling.

This is not a loan to pay off debts and funds will not be used to make monthly payments to creditors.

Monthly payments are made by the consumer and a large portion will be placed into a personal FDIC insured savings account.

Nearly 80% of American families have at least one credit card and 44% of these families carry a balance on their card(s) each month. With this widespread utilization you would think that there would have been a tremendous amount of transparency in the policies and practices of the credit card industry. Unfortunately, this has not been the case.

In the last year, have you experienced a credit card interest rate increase, a fee you felt was unfair or a credit line reduction for no specific reason? If so, did you receive any notice or explanation why? Were you aware of your options when your interest rate was significantly increased? Did you realize that your credit scores were likely negatively affected by these changes? For most Americans the answers are not favorable. Many consumers across the United States feel as though they are held hostage to the credit card companies and deal with the lack of transparency as a "necessary evil". To pour salt on the wound and highlight the magnitude of the challenge, it was reported that the credit card providers collect around $15 billion in penalty fees each year.