Debt settlement clears your debt with creditors for less money than you owe. Level’s credit counseling offers a quick, affordable solution for urgent debt relief and credit repair.
Debt settlement programs aim to significantly reduce your debt to creditors and your monthly card payments. They help resolve credit problems and avoid filing for Chapter 7 bankruptcy. While there are no guarantees, clients of Level Debt can reduce their credit card debt by 45%-50%.
Creditors often see debt settlement as a form of insurance, making them more likely to recover money compared to other options. This forms a solid foundation for discussions with creditors. This gives us a solid foundation on which to open discussions with a creditor.
Debt settlement helps thousands eliminate credit card debt quickly, avoiding bankruptcy, lawsuits, court judgments, and third-party collection calls.
Reduce monthly debt by 45%-50% and rebuild your financial life with this reliable option.
Clients of Level Debt typically complete their debt settlement program in 24-48 months. Settled debt may stay on your credit report for up to seven years. A Chapter 7 bankruptcy can remain on your credit report for up to 10 years. To start rebuilding credit after settling debt, open and responsibly use one or two new credit accounts, paying your cards promptly.
Debt settlement isn’t difficult with the right credit counseling company. Level Debt counselors analyze personal finances and fight to help you become debt-free. We advocate for you with creditors, lenders, and even yourself.
We’re here to provide encouragement, resolve, articles, and analysis to help you cast aside debt and regain control of your finances.
Debt settlement is based on the idea that by ceasing regular monthly debt payments, creditors may accept a reduced amount as settlement. This is often seen as advantageous for them. After evaluating your credit profile, we’ll provide an estimate of how quickly we can settle your debt. Keep in mind that negotiations with creditors can be time-consuming, sometimes taking up to two years. Patience is crucial. Once you qualify for Level Debt settlement program (our review takes less than a day), you can begin transforming your financial life through an expedited process, short of bankruptcy.
Most clients who contact Level Debt have already stopped making minimum monthly payments because they can’t afford them. If they haven’t stopped paying, their financial situation is still precarious due to balance transfers and cash advances.
Stopping payment carries risk, but creditors often prefer to settle rather than litigate. It’s the only way credit card companies will engage with your debt settlement petition.
Next, you’ll transfer a smaller amount of money monthly to a “utility” savings account, which you’ll fully control. This is a key concept. Level will help determine the appropriate deposit, but the money remains yours, managed by a third party, under your control. If you decide to discontinue the process later, the money (including interest earned) is yours to redirect as needed.
But abandoning a debt relief process that saves you up to 40% of your monthly credit card payments will be difficult. The monthly deposits to your utility account typically make up just 60%-70% of your minimum credit card obligations. So, apart from having 40% more cash on hand, you’ll be on track to build the financial resources for a persuasive lump-sum settlement offer to your credit card companies.
Once you’ve saved 30% of your total debt balance in your utility account, Level – with your permission – will start the settlement-offer process. Our credit counselors are skilled negotiators, having spent hours on the phone with banks and other creditors settling debt for over 20,000 Level clients. The experience and knowledge of our experts work to your benefit, enabling negotiators to strike the most advantageous settlement balance possible. Level typically negotiates your debt balance down to 50% of what you owe, demonstrating why debt settlement is the quickest and least expensive way to get out of debt without filing for Chapter 7 bankruptcy.
IMPORTANT: For a debt settlement solution to work, it’s imperative that you can still make at least 60%-70% of your minimum monthly credit card payments. If you can’t meet this threshold, debt settlement is not your best option for debt relief. In such a case, you may want to consider a Debt Consolidation Loan.
Level Debt charges no upfront fees & assesses no fees until debt resolution. Fees vary by state & enrolled debt amount. Expect fees up to 25% of total debt. Debt settlement provides sensible insurance against high interest rates & monthly fees from card companies. Discover the value of Level Debt solutions!
One misconception about debt settlement is that it will harm your credit report long-term. Ceasing payment to creditors leads to delinquency, late fees, and more interest, temporarily impacting your credit score negatively. However, once your debt is settled, your credit score can actually increase. In fact, customers who complete the Level debt settlement program often find their credit score equal to or higher than before settlement.
Forgiven debt over $600 is taxable by the IRS. You might owe taxes on the forgiven or canceled debt amount of your cards. For instance, if you settled $16,000 of debt for $8,000, $8,000 was forgiven and may be taxable. Report this forgiven debt amount as ordinary income to the IRS.
While negotiating a debt settlement yourself is possible, it can be risky. Inexperienced negotiators often lack the time and resources to handle hardball tactics used by creditors or collection agencies. This may lead to paying more than necessary. Such tactics can be dispiriting and lead to considering bankruptcy.
With Level Debt, you won’t be intimidated. We have the experience to negotiate settlements on your behalf, providing real savings and a fresh start. We invest time, sometimes up to two years, contacting your banks and creditors to significantly reduce your debt burden and monthly payments.
Our credit counseling team will develop a customized plan to eliminate your credit card debt and lower your monthly payments in a fraction of the time it might take on your own.
Level Debt’s credit counseling experts have saved 20,000+ people from financial ruin and the burden of debt since 2009. Our accredited experts provide customized debt solutions and personalized service to help you achieve a debt-free lifestyle.
Knowledge is power, and understanding your debt relief options is the first step toward a future free of perpetual debt. The next step is to take action.
See if you qualify for debt settlement by taking the brief quiz below.
A debt settlement plan may not always be the optimal solution. Explore our alternative debt relief options: Debt Management Plan & Debt Consolidation Loan.