Consumers enroll in debt settlement programs believing they are an ideal solution for reducing their credit card debt. Debt settlement companies claim they will negotiate with your creditors and reduce your debt by up to 70% for a fee that can be as high as 20% of the original amount owed. Monthly payments are sent to the settlement company, and they in turn will remit monthly payments to your creditors.

The initial monthly payments are used to pay the debt settlement company's fees, which typically must be fully paid before they contact any of your creditors. During this time, interest and/or late charges continue to be added each month to the accounts and the late payment status appears on your credit reports.

When a debt settlement company contacts a creditor, the consumer's credit reports may already be negatively affected and the debt may have already been sold to a debt collector. Consumers previously enrolled in a debt settlement program have enrolled in our Debt Jurisprudence™ process for these reasons.

If a debt settlement company successfully negotiates a debt reduction, your monthly payments may actually be higher than the minimum payments required by credit card companies for the original amount owed. Your credit reports will be negatively affected for several years and you will be liable for Federal, and possibly State, income tax for any debt cancelled or forgiven by the creditor.

In addition to efforts designed to reduce your debt by up to 100%, the Debt Jurisprudence™ process provides other significant advantages, including cash flow improvement and non-disclosure of your financial information.

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