FAQs

Debt settlement is a process where a debtor negotiates with creditors to reduce the total amount owed on unsecured debts, such as credit card balances or personal loans. The goal is to reach an agreement where the creditor accepts a lump sum payment that is less than the full amount owed, considering the settled debt as paid in full.

Debt settlement typically involves the following steps:

• Debtor or their representative contacts creditors to propose a settlement offer.
• Negotiations take place to reach a mutually agreeable settlement amount.
• Debtor makes a lump sum payment to settle the debt.
• Creditor considers the debt settled and closes the account.
• The process repeats with other creditors until all eligible debts are settled.

Yes, debt settlement can negatively impact your credit score. When you settle a debt for less than the full amount owed, it may be reported to credit bureaus as a "settled" account, which can lower your credit score. The impact depends on factors such as your current credit profile and the number of accounts settled.

Debt settlement typically applies to unsecured debts, such as:

• Credit card balances
• Personal loans
• Medical bills
• Collection accounts

Unsecured business debts Secured debts, like mortgages or car loans, are generally not eligible for debt settlement.

The timeline for debt settlement varies depending on factors such as the number of creditors, the amount of debt, and the negotiation process. On average, debt settlement programs can take between 24 to 48 months to complete. However, individual settlements with creditors may be reached sooner, providing incremental relief throughout the process.

MDR Financial differentiates itself through:
Personalized service: We tailor our approach to each client's unique financial situation.

Experience: With over 20 years in the industry, our team has the expertise to navigate complex debt settlement cases.

Local knowledge: We understand the nuances of the Michigan financial landscape, allowing us to better serve clients in the state.

Proven results: We have a track record of successfully negotiating favorable settlements for our clients.

The cost of debt settlement varies depending on the specifics of your case. MDR Financial provides transparent pricing and does not charge upfront fees. Our fees are based on a percentage of the amount we save you through the settlement process. We believe in a performance-based model where our success is tied to the results we deliver for our clients.

While it is possible to attempt debt settlement on your own, it can be challenging and time-consuming. Creditors may be less responsive to individuals, and the negotiation process can be complex. Working with a professional debt settlement company like MDR Financial can increase your chances of success, as we have the experience, knowledge, and relationships with creditors to negotiate effectively on your behalf.

Debt settlement is just one of several debt relief options. Other alternatives include:
Debt consolidation: Combining multiple debts into a single payment, often with a lower interest rate.

Debt management plans: Working with a credit counseling agency to negotiate lower interest rates and payments with creditors.

Bankruptcy: A legal process that can eliminate or restructure debts, but with significant consequences for credit and assets. The best option depends on your individual circumstances, and MDR Financial can help you assess your situation and determine if debt settlement is the most appropriate choice.

Debt settlement may be a suitable option if you:

• Are struggling to make minimum payments on unsecured debts.
• Have a significant amount of unsecured debt.
• Are facing financial hardship due to circumstances like job loss, medical issues, or divorce.
• Want to avoid bankruptcy and its long-term consequences.

However, debt settlement is not the right fit for everyone. It's essential to carefully consider your financial situation and discuss your options with a qualified professional, like the team at MDR Financial, to make an informed decision.