Clients of DMB Financial often ask what they can expect from their first settlement. You recognized a debt problem and enrolled in a debt settlement program. Now what happens?

Your funds accumulate in an F.D.I.C. insured special purpose account that was set up at the beginning of your program. Each month, as you contribute your payment to this special purpose account, the money accumulates until we have enough to begin settling one of your credit cards. We generally begin negotiations within a four to eight month time frame following your enrollment. The timing of negotiations depends on the amount of money in your account and what kind of terms each creditor is willing to take at a given point in time.*

In addition to the amount of funds available in your F.D.I.C. insured special purpose account, there are many other factors that will affect each individual settlement:

1. Type of Creditor: No two creditors handle debt resolution in the same manner, and negotiations are conducted on a case-by-case basis. Internal company debt resolution policies, credit scores and geographic locations are just a few of the items we take into account…
2. Balance of Debt: Some creditors are more apt to agree to a debt settlement if the debt amount on that account is higher. Again, this is determined on a case-by-case basis for each individual settlement and each individual creditor…
3. Status of Debt: Settlements are also affected by the delinquency status of the debt. -

Once we negotiate a settlement offer from one of your creditors, we forward this offer to you for review and acceptance. If you accept the terms, the settlement amount (and the DMB Financial success fee) is paid from your F.D.I.C. insured account. We suggest our clients retain this settlement letter (click here for a sample settlement letter) for general record keeping matters as creditors may fail to report this information to the credit bureaus.

At this point, we revisit your debt settlement plan, adjust the strategy if necessary, and you begin accumulating payments towards your second settlement. Once we settle with one creditor, we focus our attention on the next until each debt (account) has been negotiated and settled.

The first settlement is the most important. This is where we showcase the value we can deliver by negotiating debts as low as possible. If you haven’t gotten to your first settlement, hang in there…You’ll soon have one less credit card debt and be one step closer to financial freedom!

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*Individual results may vary based on ability to save funds, amount of debt, willingness of creditors to negotiate, and the successful completion of all program terms. Program does not assume or pay any debts, nor provide legal or tax advice. Prudence should always be taken by consumers when reviewing contracts and disclosure materials. DMB’s services not available in all states.

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1. Profiles in Success: How Magalie M. Settled $25,000 in Debt in 3 Years
2. How to Settle Accounts Early
3. How Uncle Sam Can Help You Pay Down Your Debt
4. The 3 Secrets to Completing a Debt Settlement Program
5. Profiles in Success: How Andrew A. saved over $14,000 with DMB Financial