Debt Settlement Blog

When faced with debt relief options many consider the use of a debt settlement program to rid themselves of the current credit card debt that they have. If you have found yourself in over your head debt settlement is usually the best way out of debt. Debt settlement is for consumers that have come into a financial hardship or have stopped making payments to their creditors and are trying to avoid bankruptcy.
One of our clients recently told us about an inquiry they made online with a debt settlement company. To our shock and amazement this so called debt settlement company was clearly in it to make themselves a buck. Industry average for debt settlement companies is about 15% of the total amount of debt is the fee for the program. FDN Solutions LLC currently charges 14% and no additional fees apply.

The customer explained to us a fee structure that was just amazing. In FDN’s debt settlement program most clients will pay back approximately 54% of the program debt. Program debt is the amount of debt accepted into the program. With the other company this would have been the breakdown.

If the total amount of debt was 20k she would have had to pay roughly 40% back to the creditors 8k. Then the fees at 15% would amount to 3k Then they tried to hit her with a $59.99/month maintenance fee for the account. (what was the point of the 3k?) All in all she would have had to pay back over 36 months a total of $13,159.64. Why pay someone $59.99 for 36 months when they are already earning a fee?
This is outrageous and we advised the client of our structure of fees. Upon noticing that our program would cost her almost 3k less she asked about qualifying for the debt settlement program.

Not all debt settlement companies are like FDN Solutions LLC. We are constantly trying to educate the general public about how to avoid potential scams and additional fees when it comes to debt settlement programs. As you may well see that the companies that charge these fees do not have your best interest in mind.

Be wary of debt settlement companies that claim that they can:

STOP creditor calls

Charge a maintenance fee (usually a sign that they don’t do there own client servicing but rather sell your account to someone else.)

Claim that debt settlement can help your credit.

Ask you to fill out an application before reviewing your situation.

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