Debt Settlement Blog

Debt settlement programs are becoming more popular than the standard credit card counseling program or debt consolidation loan. This is primarily because debt settlement companies can award you with one lower monthly payment while you pay off your debts within 12-36 months or less. It is important that all consumers do homework to find the company that suits their needs. We have compiled a list of items that consumers should be aware of…

Typically these are 5 items to watch out for:

1. High Pressure Sales

Debt settlement programs are not for everyone and there are inherent risks associated with the programs. Any company that tells you that you can enroll online immediately is one to avoid. You are making a big financial decision that is going to require some thought and research before you sign up online right?

Here at FDN Solutions one of our experienced debt consultants can show you the options you have for getting out of debt. They can also discuss what it takes to qualify. Most of the time we will need to see the actual proof of the debt so that we can ascertain if we currently do business with the creditors that you have. Keep in mind you will need to qualify for our program.

2. All Fees Upfront

What is that all about? Debt settlement programs typically last anywhere from 12-36 months or less. If a debt settlement company collects its fees over the first year what incentive do they have to continue to settle your debts.

FDN’s fee structure over the program allows the client to have more funds available for settlement in a shorter time frame than the common debt settlement fee model of the first year of fee collection only.

3. Fees For The Program

Most debt settlement companies charge fees in excess of 16-25% of your total debt plus a percentage of your total debt.
NOT FDN Solutions. Our clients pay a flat 14% of program debt service fee over the duration of the program. Our clients are already in debt and there is not a need to charge excess fees.

4. Maintenance Fees

The first time we came across a client that mentioned this we noticed yet another sneaky way to charge a fee in addition to the 16-25% that most debt settlement companies charge. A company in Texas is charging a $29.99/month fee to manage the account in addition to the service fees for the program. Another agency we found is charging a $59.99/month fee to manage the account as well.
FDN Solutions does not charge any monthly fees in addition to the fees for the program.

5. Debt Settlement Trust Account Fees

Many debt settlement companies do not offer you a secure place to keep your money during the debt settlement program. They choose to debit service fees from your checking account and require that you save the monies needed for settlement in your own account. The company may offer you a special purpose account for use during the settlement process and require you to pay a fee for that account monthly.

FDN Solutions has a alternative to these methods. Our clients can choose the type of account they would like to use and all accounts are FDIC insured. The clients are in full control of the account at all times.

Our debt settlement programs are engineered with clients best interest at hand. We can show you the way out of debt in as little as 12-36 months or less with one lower monthly payment.

Call us today at 1-866-791-2455 for a free 10 minute consultation.