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The Debt Settlement Process
The Debt Settlement Process begins with a goal to get you out of debt. Becoming debt free is the first step to becoming
financially secure, and debt settlement may be
your best option.
How
it works:
We will set you up with an affordable
monthly savings plan, (which is
determined on a client-by-client basis between
you and a counselor at Credit Exchange Center).
Based upon what you are able to set aside and
save each month in your trust account, we can
determine how many months you will be a part of
the program, and ultimately determine when you
will be debt free.
Our debt settlement process has been tested and
developed over years of experience by our team
of professionals in the field of finance and
credit card debt. Our professionals are highly
skilled in each of their fields of expertise.
Through many established creditor relationships
and proven processes, we are able to
successfully negotiate the debts of our clients
at a substantial discount. Creditors are willing
to negotiate a debt with us, on behalf of our
clients, with the understanding that the settled
amount will be paid in a timely manner.
Furthermore, creditors are always looking to
avoid the ineffective and costly efforts of an
outside collection company. We continue to
develop our relationships with creditors
throughout the country, and we always maintain a
very professional and cooperative relationship
with the creditors in order to reach the most
favorable settlement offer for our clients.
Documents you will need for Program:
-
Enrollment Documents (Can be downloaded from
this website)
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Creditor Statements with Address, Acct Number,
Phone and Balance
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Any
Collection Letters, Attorney Letters
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Income & Expense Worksheet
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Letter of Hardship *CEC will assist you if
needed.
-
Copy
of Voided Check/Savings
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Importance of Savings Plan
Our
Service to Client:
Actual Steps once Client Enrollment is accepted:
1.
Client will receive Welcome Packet 7-10 days
into their program which includes letters
(pre-formatted) to send (with signature) to
their creditors notifying them of participation
in a debt settlement program.
2.
Three (3) days after Client receives the Welcome
Packet, they will receive a call from Client
Services to review the contents, and answer any
questions.
3. 30 days into Client's program, they will
receive a call from their Account Management
Team, Debt Mediator, to create a strategy for
the account. The AM will remain in
constant contact for updates. During that
time Client has full access to their back office
website.
4.
Quality assurance throughout program.
Program Responsibilities:
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Credit Exchange Center completes 90% of the
program responsibilities while Client
Completes 10%
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Credit Exchange Center |
Client |
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1. Work with your creditors
2. Achieve the best settlements possible
while ensuring complete documentation.
3. Provide Exceptional Customer Service
4. Assist with all legal situations
5. Process all documents Client faxes
in. |
1. Stay Current with monthly savings.
2. Use the creditor scripts. Do not have
conversations with creditors over the
telephone.
3. Forward ALL creditor and/or collector
correspondence to our office ASAP via
fax number given to Client. |
Important Disclaimer: If client does not adhere
to all program guidelines, this program will not
be a success to you. We know which system
works most efficiently for our Clients.
"The
Settlement Promise"
We
negotiate the client's total debt down to an
average of 40-70% of what the ORIGINALLY owed.
If a client has five cards enrolled in the
program, one may settle at 80%, one may settle
for 100%, two cards may settle at 30% and the
last one at 40%. The overall settlement
percentage will range between 40-70%.
If we negotiate settlement offers less than 50%
off the ORIGINAL balance, you will have funds
remaining in your trust account once your
program is complete. If we receive any
offers higher than 50%, you will probably need
to provide additional funds beyond the schedule
we provide.
The end result could vary higher or lower than
what we estimate because everyone's situation
is different. The important thing to
realize is that Clients still pay less than
what they would have paid in interest and fees
if they had not joined our program.
Interest & Fees:
Interest and Fees will continue to accumulate
on enrolled accounts each month, HOWEVER, our
Certified Debt Mediators begin negotiating
from the amount ORIGINALLY (account balance
when entering program) enrolled in the program
once there are enough funds available in
Client Trust Account.
Credit Reporting:
Debt Settlement will have a negative effect on
the client's credit report depending on the
client's situation prior to joining our
program
Once a settlement is reached, we will send the
client documents to forward to all credit
bureaus. This will verify that the
account has been settled and paid with
a $0.00 balance.
When completed with the program and all debts
are paid, the client's credit report will
begin to heal itself and will not have the
long-term effect that a public recorded
bankruptcy has.
This concludes our outline of the debt settlement process that Credit Exchange Center offers.
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