The Debt Settlement Process

Debt Settlement is a process in which both debtor and creditor settle or resolve a debt for less than what is owed. If negotiated properly, a debtor’s debt can be quickly, and in some cases, significantly reduced.

To ensure a successful settlement occurs, funds need to be readily available to pay the settlement amount as negotiated by S&N in behalf of its client. And because these agreed upon settlements must be immediately paid, the funds are held in a client-owned, special purpose F.D.I.C. insured account to assure an expedient transfer. In the unlikely event that S&N is unable to negotiate with a particular creditor to settle a client’s debt, the account would be dropped from the program. This action, in turn, would shorten the client’s program length, reducing the respective monthly administrative costs.

While the successful completion of S&N’s Peace of Mind debt settlement program will ultimately result in the resolution of debt owed and an improved credit utilization and debt-to-income ratio following continued financial responsibility, there are associated risks with this type of program such as; the possibility of lawsuits by creditors, a credit score that will be negatively affected, and the debt that is settled will be identified on a client’s credit report as “paid as agreed”, “settled for a lesser amount”, or “settled in full” rather than simply “paid in full.” While these concerns are valid, we believe that for some consumers, the risks associated with choosing an alternate solution other than debt settlement could potentially have a greater detrimental effect on their long-term financial stability and wellbeing.

Throughout the duration of the debt settlement process, S&N’s clients will have immediate access to their Client Service representative via our toll free number or e-mail. We even have extended office hours for those clients who reside on the west coast.