Fedsco - How debt settlement works and how we operate

Debt Settlement also known as "debt negotiation", "debt arbitration" or commonly referred as "debt relief", is quite simple. We skillfully negotiate your unsecured debt reducing your debt down to 55% guaranteed. Based on your customized low minimum affordability, the process usually takes anywhere between 12 to 36 months. Our financial advisors will customize your program based on your affodability and NOT what you should afford. After the enrollment, we contact all your creditors and inform them that you are working with us and that you are now being represented by Fedsco. This is very important as it helps minimize or eliminate creditor calls. The standard practice is to direct all communication to the debt settlement company that you are working with. However, it is important to remain cognizant of the fact that original creditors can still contact you legally, but most will comply with such requests.

The most important part of debt settlement is to complete settlement process with your creditors and or collection agencies. Once our service is retained, in order to inform that we are representing you, it is necessary for us to have you sign a contract and a document that legally authorizes them to negotiate with your creditors on your behalf; this is known as a “Limited Power of Attorney.” During the settlement process, you will make a monthly deposit into a "assigned settlement account" that will eventually be used for your debt repayment. As funds begin to accumulate in the account, Fedsco will start to negotiate with your creditors.

Once a debt settlement offer has been agreed upon, we will contact you to authorize the payment, directly from your assigned debt settlement account, to the creditor. Once the payment has been made, that debt is considered settled in full. You will no longer owe anything on that debt and the account will be closed.

Fedsco's process has been tested and developed over years of experience by our team of professionals in the field of finance and credit card debt. Our professionals are highly skilled in each of their fields of expertise.

Through the established relationships that we have with many creditors and financial institutions, we are often able to successfully negotiate the debts of our clients at a substantial discount. Creditors are often willing to negotiate a debt with Fedsco, on behalf of our clients, with the understanding that the settled amount will be paid in a timely manner.

Furthermore, creditors are often looking to avoid the ineffective and costly efforts of an outside collection company. Although Fedsco continues to develop our relationships with creditors throughout the country, and always maintain a very professional and cooperative relationship with the creditors in order to reach the most favorable settlement offer for our clients. Remember we work for you.

Debt Settlement is a legitimate way of solving your problem without the need for bankruptcy. Our representatives work each case individually to determine your eligibility and then, if you qualify, they will establish a program that allows repayment of the debt through affordable monthly payments while ultimately saving your credit. This approach reduces your debt vs. consolidation options. Our approach assists you by reducing the time to repay the debt and by lowering the total amount you owe.

For more information complete the brief information form on the upper left side of this page. A Financial Service Representative will contact you to discuss how to get started today. There is no cost or obligation.

How debt settlement works

How debt relief works, How debt negotiation works