Debt Mediation

Reduce Your Burden.

Reduce Your

Debt Mediation

Debt Mediation, also called “Debt Relief,” is a financial service where a qualified agent negotiates with creditors to settle our clients’ accounts based on financial hardship.

This program is especially effective for people who feel that given their current income, they can never significantly reduce their overall debt load, because their interest rate is so high. In fact, the average person with poor credit pays more than double the interest rate than a person with a good credit score. Through Credit Mediation, a consumer can reduce their principal amount, and therefore, resolve their debts for significantly less money than they owed.

Qualifications for this program are:

  • $5,000 in unsecured debt
  • A recognized financial hardship including, loss of income, divorce, fixed income, death, unexpected expenses, or illness

The Process of Debt Mediation is Simple:

Fill out the application.

After Credit Needs receives and reviews your application, one of our 30,000 qualified agents will contact you. Based upon the application information, the agent will be able to tell you if you qualify for the debt mediation program. If you do not qualify, Credit Needs has several other services 3 that may better serve your needs. Your agent can speak to you about these programs.

Once you are approved for the debt mediation program, you will then begin depositing money into an FDIC insured Special Purpose Account with Debt Pay Gateway. 4 Although this is a fully federally insured account, this account is not a standard bank account; the only purpose of this account is to accumulate the funds necessary to pay down your debts.

While you are depositing money into the Special Purpose Account, our agents will contact your lenders and negotiate principal reductions on your loans. This step is the most complicated and time-consuming part of the debt mediation process. Our agents are highly trained and certified through M-Stars, the leader in credit training and compliance for nearly ten years. Credit Needs agents are experienced, persistent and know how get the best results for our clients.

Once the Credit Needs agent has made an agreement with your lender, you will be notified of the new loan terms and payments will begin to be deducted from your Special Purpose Account.

Finally, once your debt is completely paid off, Credit Needs agents will request a letter of full payment from the credit card company and an update to the credit bureaus reflecting the loan status.

As stated above, while the debt mediation process is much faster than struggling to pay off all your debts at the normal interest rate, this process is still time consuming. During this period of time, many of our clients take advantage of Credit Need’s Legal Services 5 Plan in addition to the Debt Mediation Plan. Under our Legal Services Plan, creditors will stop calling you and your family, harassing you for payment.

Credit Needs will continue this negotiation, payment, and resolution process on your behalf until all of your debts are resolved.

The Debt Settlement Process

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