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Finding Financial Freedom with Phoenix Personal Debt Relief
Dealing with overwhelming personal debt can feel incredibly stressful and hopeless. The letters from creditors keep coming, the debt collectors keep calling, and the interest charges keep mounting. You may have tried budgeting, cutting expenses, working extra hours and it still isn’t enough. Debt settlement through companies like Phoenix Personal Debt Relief can provide real solutions to get out of debt and regain control of your finances.
At Phoenix, we understand how suffocating high personal debt can be. We’ve helped thousands of clients negotiate and settle their debts at a fraction of what they owe. Our debt relief programs can eliminate credit card balances, medical bills, personal loans and other unsecured debts in 24-48 months. If you’re struggling with $10,000 or more in debt, debt settlement may be the light at the end of the tunnel you’ve been looking for.
How Phoenix Personal Debt Relief Works
The debt settlement process involves working with your creditors to agree on a reduced lump sum payment to settle accounts for less than you owe. Here’s how it works:
- You stop making payments to creditors and start contributing to a dedicated account instead.
- Phoenix negotiates with your creditors to settle debts, typically for 30-50% less than the balance.
- After sufficient funds accumulate in your account, Phoenix pays the negotiated settlement amount as a lump sum.
- The creditor agrees to forgive the remaining balance.
This allows you to become debt-free much faster than continuing minimum payments, which can take decades with high interest rates. Phoenix’s debt relief programs aim to resolve all eligible debts within 24-48 months.
The Benefits of Personal Debt Settlement
Debt settlement provides a number of advantages over credit counseling, debt consolidation loans, or bankruptcy:
- Pay a Fraction of What You Owe – Debt settlement reduces balances by 30-50% or more.
- Become Debt-Free Faster – Programs take 2-4 years instead of decades.
- Avoid Bankruptcy – Settling debt is better than a bankruptcy on your credit report.
- Lower Interest & Fees – You stop accruing interest charges once enrolled.
- One Affordable Payment – Make one monthly payment to Phoenix instead of juggling multiple bills.
- Flexible Programs – Settlement plans are customized to your unique situation.
Debt settlement provides permanent debt reduction and a path to becoming 100% debt-free in a reasonable timeframe. It’s a powerful solution for gaining control over high credit card balances, medical bills, payday loans and other unsecured debts.
What Debts Can Be Settled?
Debt settlement works best for unsecured debts like:
- Credit cards – Visa, MasterCard, American Express, store cards
- Medical bills – hospital, doctor, dental expenses
- Personal loans – bank, peer-to-peer, payday loans
- Utility bills – cell phone, electric, water bills
- Auto deficiencies – remaining balance after repossession
- Old accounts in collections
For secured debts like auto loans or mortgages, check out options like refinancing which can lower payments. Student loans also can’t be settled, but you may qualify for IBR or deferment.
What Are the Requirements for Debt Settlement?
To enroll in a Phoenix debt relief program, you’ll need:
- Unsecured debts totaling $10,000 or more
- Proof of steady income from employment, benefits, pensions, etc.
- The financial hardship or inability to pay minimum balances
- Willingness to stop making payments to creditors
- Commitment to contribute to a dedicated settlement account
You’ll receive a free consultation to review your debts, income, assets and budget to see if you qualify. Debt settlement won’t impact current assets like your home, car, retirement savings or valuables.
How Much Does Debt Settlement Cost?
Phoenix offers flexible pay-as-you-go programs with no upfront fees. Our fees only come from a percentage of the debt we settle for you. The fee depends on your state and total debt enrolled. We also work with third-party financing companies that provide low-interest funding options.
In addition, most creditors charge a settlement fee to process the lump sum payment. This is usually a percentage of the settled amount. The exact fee depends on the creditor.
When you consider Phoenix’s fees plus creditor settlement charges, most clients end up paying around 15% of their total enrolled debt. So if you settle $50,000 in debt, total fees would be about $7,500. That’s much less than paying the full balances with interest!
What Are the Drawbacks of Debt Settlement?
Debt settlement can negatively impact your credit score since accounts will become delinquent when you stop making payments. However, those late payments already hurt your credit. Settling debt for less than you owe won’t further damage your credit. Plus your score will start to improve once balances are reduced.
Another drawback is that creditors may take legal action like filing a lawsuit or garnishing wages while accounts are delinquent. However, Phoenix will work with you to negotiate with creditors and halt collections activity. Lawsuits are rare if you communicate properly with creditors.
Lastly, any forgiven debt may be taxable income. But insolvency exclusions and other deductions often offset any tax liability. Phoenix provides tax assistance to help determine if your settled debt is taxable.
How Can I Start Debt Settlement?
If you have over $10k in personal debt and need help, Phoenix offers a free, no-obligation debt and budget analysis. It takes less than 5 minutes to get started. You can:
- Call (800) 123-4567 to speak with a certified debt consultant
- Chat live on our website with a Phoenix debt expert
- Fill out the online assessment form and we’ll contact you
There’s no commitment or fees for this initial consultation. We’ll review your financial situation, discuss your options, answer your questions and recommend a custom debt relief solution.
Don’t keep struggling with high personal debt. Phoenix Personal Debt Relief can help you finally see the light and get on the path to financial freedom. Get your free debt assessment today!