Some debt settlement clients decide, for one reason or another, to quit their program prior to solving their debt problems. This is one of the biggest mistakes you can make. The majority of clients who leave a debt settlement program rarely succeed in solving their debt problems on their own, and remain mired in debt for many years to come. On the other hand, graduates of the DMB Financial debt settlement program settle their debt in as little as 36 months*, and are able to start their journey to a financially successful future.

See below for the top 4 reasons why quitting your debt settlement program should be avoided at all costs:

1. You’re on Your Own: You will lose the expertise of DMB Financial’s experienced debt negotiators, making it less likely that you will receive favorable debt settlement offers, if any at all. DMB debt negotiators have existing relationships with most major creditors, and know all the ins and outs relating to each one’s policies and terms, which in turn results in favorable debt settlements for our clients.
2. Active Settlements Will be Voided: If you are in the middle of settling an account, quitting the program will give creditors the opportunity to void any agreement between themselves and DMB. For example, if a settlement agreement of $10,000 has been reached on a $30,000 debt and you have made 2 payments of $2,000 towards the settlement amount, quitting the program will make the agreement null and void. This means that the $4,000 you have already paid will not be going to the $10,000 settlement amount, but will go towards the full $30,000, and you will still owe the full balance of $26,000 rather than the $6,000 settlement balance.
3. You Lose the Side Benefits: Quitting your debt settlement program will mean that you lose the side benefits of being a DMB client – such as membership in our Legal Club. The Legal Club offers free legal consultations, document reviews, and living will preparations in addition to discounted legal representation should the need arise.
4. You Lose Financial Guidance: Active DMB Financial clients are offered considerable financial advice and assistance as they near the end of their debt settlement programs. The purpose is to help clients make the transition from being a slave to credit card debt to being a successful long-term investor.

There will always be occurrences and circumstances that make quitting your debt settlement program an attractive option for any number of reasons. In the long run, however, sticking to the plan, completing your program, and settling your debt or solving your debt problems is the single most important thing you can do for yourself and your family financially.

*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.

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.

The Situation

In the aftermath of a divorce, Andrew A. from Florida found himself buried under a mountain of debt. His ex-wife had decided not to pay a series of debts agreed upon in the divorce settlement that were tied to Andrew’s name. By the time Andrew realized what was happening, his credit score had fallen almost 200 points and he was struggling to get caught up.

The Solution

Andrew searched the internet for a solution to his growing debt problems, and decided to contact DMB Financial for a free consultation. Andrew’s personal debt counselor recommended a strategy that would fit within Andrew’s budget and leave him debt free in as little as 36 months.

The Result

DMB Financial quickly began to correct Andrew’s debt problems by initially settling his largest account and negotiating a favorable agreement with another. At the completion of his debt resolution program, Andrew had saved more than $14,000 representing 49 percent of his total debt.*

*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.

The Situation

In 2006, Magalie M. of Massachusetts was facing substantial debt problems. Growing home needs and mounting credit card bills had led to nearly $25,000 in outstanding debt. Between their mortgage and the other growing debts, Magalie and her husband were finding it increasingly difficult to keep their heads above water.

The Solution

A friend recommended DMB Financial to Magalie, who called and spoke with one of the company’s program consultants. Magalie learned there was light at the end of the tunnel, and was able to structure a strategy that worked on her terms and within her budget.

The Result

With a strategy in place and funds accumulating in an F.D.I.C. insured special purpose savings account, Magalie and her husband were able to settle all their unsecured debt in 36 months.* “It was a dream come true to realize we were debt free,” says Magalie. “I’ll not hesitate to refer any member of my family or friends to DMB. If I was a teacher, I’d give them an A+.”

*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.

Meet Settlements Manager Derek Valley. Derek joined the company in 2006, bringing more than 5 years of debt management experience to the table. And as a former business owner, Derek is all too aware of the importance of effective debt management, and uses this knowledge to help clients become debt free and build plans for a successful future.

A perfect example of Derek’s commitment to his clients can be found in the story of Griff H., a retired U.S. Navy Commander. In response to a Washington Post article warning of false promises from debt settlement companies, Griff wrote the author about the positive experience he recently had with DMB Financial, and specifically, his settlement consultant Derek Valley. “Derek negotiated a settlement with my largest creditor for 58% of the total amount owed,” said Griff. “He then settled my second account for 19% of the total debt owed, and a third account for 55% of the debt owed.”* He continued. “I am very happy with Derek and DMB Financial. Nothing was promised that hasn’t been delivered.”

Griff’s story is just one of the many success stories Derek has had a hand in creating. In the first half of 2009 alone, Derek settled more than $1.3 million in client debt for just over $600,000, representing total savings of more than $700,000 or 53% (not including DMB Financial’s fees). His commitment to helping clients effectively manage their outstanding debt problems is a perfect example of the spirit and dedication of DMB Financial’s entire staff. 

*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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DMB Financial has six years of experience helping consumers eliminate their outstanding debt problems resulting in more than $87 million dollars in savings for company clients. We work hand-in-hand with clients to identify exactly how they got into trouble, and to build an effective strategy for settling/negotiating down the debt in as short a time as possible. Additionally, DMB Financial strives to educate their clients on sound financial planning to ensure continued financial freedom. The key to the company’s success lies in the dedication and commitment of its employees, who continually go above and beyond to provide solutions to their clients’ debt problems.

I found this excellent debt settlement guide this morning. Most of these are thinly veiled marketing articles, ghost written to look like an independent study, but I took a look at the links and site wrapped around this article and it looks like the real deal.

Overall, it gives some very solid advice about how to evaluate debt settlement companies and pick one that’s the best fit for you. It’s also a very honest appraisal of the pros and cons of debt settlement. Take a read:

The Ultimate Debt Relief Guide

Debt Damage Control – The Truth About Debt Reduction Programs

I am constantly hearing horror stories about how people looking for debt relief are being misled and given bad advice about their debt relief options. It is ridiculous that the people who need the most help get treated the worst. Some people would rather suffer in their debt than seek the help they need.  This is largely due to companies that are unethical and only interested in taking your money or that they have bought into false information about these programs.  We’re going to clear the air and debunk the myths about debt as well as arm you with the information you need become debt free…

Read more here: http://debtskinny.com/2009/06/05/ultimate-debt-relief-guide/comment-page-1/#comment-661