Debt Negotiation

Online debt consolidation offers two services: debt consolidation and debt negotiation. Learn more about debt negotiation to determine if it's right for you.

Debt Negotiation Guide

Debt negotiation is a part of our online debt consolidation service. You will also hear debt negotiation referred to as debt settlement or debt elimination. Debt negotiation is a more serious intervention for people whose debt situation is fairly dire. If you opt for the debt negotiation service of online debt consolidation, we will work with your creditors to reduce the total amount of your debts. Here is how the process works:

• Fill out our online debt consolidation application. This step is the same as for traditional online debt consolidation services. You will specify your interest in debt negotiation when we contact you via telephone. You can discuss with our online debt consolidation representative which option, debt consolidation or debt negotiation, is best for you. We will also provide you with a free quote on both services, if you wish. This guide applies to the steps involved if you were to enroll in debt negotiation.
• You stop making payments to your creditors. If you were making payments to your creditors prior to enrollment in online debt consolidation, you will stop immediately. This is a temporary measure to give your online debt consolidation company more leverage as they negotiate with your creditors.
• Your online debt consolidation company negotiates with your creditors while you make payments to a special account. While your online debt consolidation company is working with your creditors to reduce the total amount of your debt, you will either make payments to a special account designated by the consolidation company or to your own account. You will continue making monthly payments to this account while negotiations are underway.
• Once a settlement is reached with your creditors, one lump-sum payment is made. After the online debt consolidation company reaches a satisfactory settlement with your creditors, the money you have been depositing into your special account is taken out to pay off the new amount of your debt. Usually, the company is able to reduce your debt by 40%-50%. Most debt negotiation companies also require your creditors to mark the accounts as "paid in full" on your credit report.

If you have any questions, please visit our Frequently Asked Questions page.