A debt that is not tied to any item of property. A creditor doesn't have the right to grab property to satisfy the debt if you default. The creditor's only remedy is to sue you and get a judgment.

A debt on which a creditor has a lien. The creditor can institute a foreclosure or repossession to take the property identified by the lien, called the collateral, to satisfy the debt if you default.

Debt Consolidation Service's debt settlement program is for those individuals experiencing financial hardships. This would include late payments, inability to pay debts currently or in the future and considering a possible bankruptcy as a solution.

Debt Consolidation Service does not advocate that any person default on their debts. Our program is not designed to negotiate debts for people who have reasonable means to pay off their debts. If you have the ability to pay your debts by paying the minimum payments, then you should continue honoring your debts. Furthermore, our program is not intended for people who are gainfully employed, have high credit ratings and can meet their monthly debt obligations.

Complete our Quickstart Application form online. One of our professional debt consultants will review your information and contact you within 24 hours to review and discuss your financial situation. After the debt consultant has reviewed your financial situation and hardship, they will determine if you are qualified for our program.

You will be asked to save a set amount of settlement funds on a monthly basis. This amount will be determined in your initial consultation by a debt consultant and is based upon the total amount of debt owed and what you can afford on a monthly basis depending on your income and expense budget. Once you have accumulated enough settlement funds to make a reasonable offer to your creditors to settle the debt, one of Debt Consolidation Service's professional negotiators will begin the negotiation process on your behalf. Each person's situation is different and the negotiation process will begin at different times depending on the amount of your debt.

Once the creditors agree to a settlement amount, Debt Consolidation Service will present their offer to you. If you approve the settlement, we will instruct the creditor to fax over the 'settlement offer' in writing. Next a recorded conference call will be established with you, the creditor, and Debt Consolidation Service to settle the balance on the account. Debts can be settled in two different ways; one lump sum payment or a term settlement. One lump sum is just that, one payment and the account is paid. A term settlement is a settlement which is paid over an extended period of time until the account is paid. Debt Consolidation Service will repeat this process for each of the remaining creditors until all of your debts have been paid and you have no remaining obligations.

Debt Consolidation Service's debt settlement program is a hardship program. Our program is designed for people who:

• Have some type of hardship (loss of income, reduction in pay, medical emergency, divorce)
  
• Has a minimum of $7,000 or more in unsecured debts
  
• Are having trouble keeping current or is delinquent on their account
  
• Are close to being in litigation with a creditor
  
• Has not contested the debt owed, but just cannot pay it
  
• May consider Bankruptcy as a solution, but would like to avoid it

Anyone considering our program should also contact a bankruptcy attorney to determine if their situation warrants filing for bankruptcy. Using the Debt Settlement process does not guarantee that you will not have to file for bankruptcy in the future.

YES. Your credit score will decline due to entering this program. How much it will decline depends on your original circumstances. Most of the accounts you place into negotiation are likely to "charge off", which will reflect negatively on your credit. However, once this charged off debt is settled, the settlement is reported to the credit bureaus. Settled accounts are positive compared to unresolved delinquent debts or bankruptcy. After all the debts have been settled and paid, the credit score should begin to improve since the negative items have been resolved. A high credit score is desirable to have, but if you have a financial hardship and are unable to pay your debts, then your first priority should be to pay your delinquent debts and get back on your feet financially.

NO. All credit cards in the program will not be active and you will not have credit privileges. Any cards you do not put into the program should not be used. This program is for you to get out of debt.

All our costs and fees are fully disclosed and require your signature for approval before you commit to our program.

Debt Consolidation Service charges a 15% service fee which is calculated on the total amount of debt an individual brings into our debt settlement program, Monthly Maintenance Fee. Our program requires a good faith down payment with the remaining monthly fees paid out through the next 12-15 months or less of the program.

All our costs and fees are fully disclosed and require your signature for approval before you commit to our program

All our costs and fees are fully disclosed and require your signature for approval before you commit to our program.

YES. Your creditors certainly have the right to sue to recover their money. But usually the purpose of the lawsuit is to force a settlement on the matter. In our experience, most creditors prefer not to go to the expense of suing and would rather try to negotiate a settlement.

NO. Debt Consolidation Service, nor any other debt settlement company, can stop creditors from trying to contact you. However, if your account is in collections; collection agencies have to adhere to the Fair Debt Collection Practices Act Guidelines. Learn More

NO. Debt Consolidation Service does not engage in credit repair services. No company can remove legitimate negative items from your credit report. Negative items will remain on your credit report according to the conditions imposed by the credit reporting agencies. The goal of our debt settlement program is to settle your delinquent accounts.

When a delinquent account is settled this is reflected on your credit report. A settled account is better than an unresolved delinquent account. Your credit score should improve after successfully completing our program. Since these debts are paid, your debt-to-income ratio should improve. Debt-to-income ratios are not part of a credit score. However, they are an important measurement by which lenders evaluate applicants for auto and home loans.

Debt Consolidation Service cannot stop a creditor from adding interest or late fees to an account. However, your individual program will reflect those fees and/or interest, and is incorporated into the debt settlement program. Because we negotiate the debt down to a fraction of what you owe, your savings are far greater than any interest or late fees that could accrue.

YES. However, this can be a long process for the creditors. The creditor has to sue you, successfully obtain a judgment, and then file for a garnishment action. If you are willing to work with your creditors then wage garnishment can normally be avoided.

Your creditors will report cancelled/settled debts exceeding $600 to the IRS and you are required to report the same as income on your annual tax return. However, the IRS permits you to write off any "income" from canceled debts up to the amount by which you were "insolvent" at the time. You need to consult with your tax advisor for advice specific to your situation.

YES. You can negotiate your debts with your creditors on your own. As a matter of fact if you successfully negotiate a debt it may cost you less in the long run to use this approach than to use Debt Consolidation Service's service.

However, you should note the debt settlement process can be long and complex for the average consumer. Our professional debt negotiators have the knowledge and many years of experience negotiating large debt reductions with the creditors. By using Debt Consolidation Service's services you won't have to waste valuable time and effort trying to negotiate with your creditors. Instead you can rely on Debt Consolidation Service's team of professionals to negotiate the best possible debt reduction on your behalf.