Before considering Debt Settlement/Negotiation option we ask that you read over the Pros & Cons of the program. This will help you to determine if this Debt Settlement may be the right option for you.

Pros:

You will pay off your debt for less than you owe

By settling your debts you can often save between 40-60%, depending on the creditor you owe money to. Not only do you get the savings on the balance, but you will also save on interest.

You will get out of debt faster than paying the minimum payment

If you have $10000 in credit card debt and you make the minimum payment every month, it will take you more than 10 years to get out of debt. To see how long it will take you to pay off your debt, use our min payment calculator) The debt settlement process may last anywhere between 12 to 60 months, depending on the client’s level of debt. ADRN has established relationships with many credit collections companies, and for many types of accounts a streamlined process is implemented to get you on the fast track to financial recovery

Avoid bankruptcy

If you're considering bankrutcy, then debt settlement may be an attractive alternative. Many people feel that bankruptcy is the last resort. So debt settlement can help you get out of debt without the stigma of bankruptcy. Remember, Bankruptcy can stay on your records for up to 10 years. With a debt settlement plan, you can start rebuilding your credit as soon as all debt is settled and paid off.

Cons:

It will lower your credit score

Anything you do other than paying your bills on time will lower your credit score. Debt settlement is no different. Same with paying your bills late. So many people have already hurt their credit score by the time they consider debt settlement. And for many people, the benefits of getting out of debt can outweigh the drawbacks of lowering your credit score.

You must be behind in your payments (or stop paying if you are not)

Debt settlement is designed for people who are already behind on their payments. So that's an indication that you're already in trouble. It is not designed for those feeling the crunch of high credit card debt but can make their payments. But if you are on the edge of financial disaster, you can stop paying your bills, in order to the leverage you need to negotiate a settlement.

You will get calls from your creditors

If you are not already receiving calls from your creditors, you will start getting them. After all, the creditors want their money, and it is your responsibility to pay. Never ignore these calls. If you have hired an attorney to settle your debts, they will be able to eliminate most of the collection calls simply by informing creditors of their involvement. Creditors will then contact your attorney directly.

You might get sued

During the process of debt settlement, a credit card may occasionally elect to file suit against you. The advantage of using ADRN is that your attorney will be ready on hand to head to court and contest the suit, thereby allowing the debt settlement process to run its course.

You might have to pay taxes on the savings

Any money you save may be treated as income for tax purposes. Some creditors may issue a form called IRS- 1099c after debt has been settled for less, in which you will need to consult an accountant and discuss your tax liability. In most cases this is still far less than the amount you would have paid towards principal and interest, so you will probably still end up ahead. But it is another expense to factor in when deciding whether or not settlement is right for you.

Debt settlement can help you get completely out of debt. Like with any financial decision, there are benefits and there are drawbacks. Make sure you consult an professional or an experienced attorney before you make your decision. But whichever debt reduction option you choose, make sure to come up with a plan, research any company or individual you decide to work with, and then most importantly of all, take action!