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The primary goal of CreditorsIT's Debt Settlement program is to save the consumer money. Debt Settlement is a strategy whereby the end goal is that the debtor (the consumer) and the creditor agree to settle the debt at a reduced balance that will be considered by both parties as payment in full. For example, if a debtor has an $8,000 balance on a credit card, a successful Debt Settlement would be one where the creditor agrees to accept $4,000 as payment in full, saving the debtor $4,000.
Debt Settlement is intended for consumers who cannot afford to make the monthly minimum payments on their credit cards or meet their necessary living expenses. As such, most consumers who choose to participate in Debt Settlement are already behind on their payments to their creditors or forsee they will soon fall behind. Most creditors are willing to accept payment for less than the full amount owed as an alternative to the consumer filing for bankruptcy, in which case the creditor may get nothing.
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