What is Debt Settlement and how does it work?

Most Americans have some sort of debt, either credit card or another unsecured type of debt. The problem arises when that debt becomes insurmountable. Debt Settlement can be an effective tool for helping one out of the debt hole. Debt Settlement aims to end high interest payments, stop collection calls and negotiate down the balance owed to the creditors. The process can be overwhelming and tricky when you’re on your own but we are here to guide you step by step to debt freedom. We have the knowledge and experience that you need to get the results you want. Continue reading to find answers to some of the questions you may have.

How does debt settlement work?

Debt relief is available for you!

Sometimes life makes you feel like you’re drowning in problems. Financial struggles are extremely common for many Americans! Healthcare is unaffordable for most, massive layoffs have taken place, gas prices are through the roof, inflation is at a high and interest rates on credit cards have many people struggling to make it through their financial crisis. If you can relate to any of this, you are NOT alone! Before you think the only option you have is bankruptcy, consider a less drastic option … debt settlement.

how-does-debt-settlement-work-debt-reliefLenders have been utilizing debt settlement for hundreds of years. Debt settlement is an agreement between two parties (lender and borrower) to settle a debt for less than what is still owed. In the late 1980s and early 1990s, many customers were falling behind on their payments with the bank. In order to get at least some of their money back, as well as to help their customers, the modern American banking industry began to formalize the debt settlement process. They did this by setting up separate departments within the bank with specially trained negotiations. These negotiators had the job of contacting delinquent customers and offering them a reduced pay off amount that would settle their overdue account.

It wasn’t long after that entrepreneurs began setting up companies to help customers trying to settle their debts by negotiating the best deal they could. This is how the modern debt settlement company came to be. Consumers flocked by the thousands to debt settlement websites in the hopes of finding a way to financial freedom from their debt. These websites offered plenty information and easy enrollment and debt settlement began to grow rapidly. It has become the most popular method of dealing with debt as an alternative to bankruptcy.

So why did debt settlement become so popular amongst Americans? It’s the fastest and least expensive form of settling one’s debt (aside from bankruptcy). A client can possibly settle all eligible debts in under three years with the new negotiated balances. Each situation is different so we encourage you to contact one of our representatives to review your unique situation with you.

The High Interest Rate Trap

Think you can pay off that debt by making the minimum payment? Think again!

If you make the minimum payment on a $10,000 balance with an 19 percent interest rate, it’ll take 42 years and 9 months to pay off your balance and cost you a total of $26,276.59. If you double the balance to $20,000 will take over 53 years to pay off and accrue more than triple the amount of the original loan in interest charges! ARE YOU CAUGHT IN THE TRAP?

42 Years 9 Months

Use the chart below to see how things get worse with even more debt

$10,000 $26,276.59 42 yrs 9 mos
$20,000 $74,464.22 53 yrs 3 mos
$30,000 $112,651.77 59 yrs 4 mos
$40,000 $150,839.39 63 yrs 9 mos
$50,000 $189,027.02 67 yrs 1 mos
$60,000 $227,214.61 69 yrs 10 mos
$70,000 $265,402.22 72 yrs 2 mos
$80,000 $303,589.81 74 yrs 2 mos
$90,000 $341,777.43 76 yrs 1 mos
$100,000 $379,965.06 77 yrs 7 mos

Fair Debt Collection Practices Act

Passed by Congress in 1977, the FDCPA establishes legal protection from abusive debt collectors

You have rights… We’ll help you enforce them!

Imagine this scenario: every night as you’re getting ready for bed your phone rings. Each night it’s the same threatening voice trying to intimidate you. Threats of garnishing your wages and arrest if you do not pay your outstanding debts.

Phone calls like this happen all the time! They’re scary, bothersome and ILLEGAL. Yes, they’re illegal! But collectors use these scare tactics all the time.

It’s important for you to know your rights. There are laws in place to protect you from such predatory practices. The FTC (Federal Trade Commission) published the Fair Debt Collection Practices Act (FDCPA) in order to protect consumers. This act was passed by Congress in 1977. This act requires debt collectors to treat you fairly and does not allow certain methods of debt collection. It prohibits third party collection agencies from using threats, harassment and inappropriate contact while trying to collect a debt. The law does not eliminate your debt but it does govern the way you are treated by collectors.

That is why Congress enacted the federal Fair Debt Collection Practices Act, a 1977 law that prohibits third-party collection agencies from harassing, threatening and inappropriately contacting someone who owes money.

Some restrictions on collection practices by the Fair Debt Collection Practices Act:

Note: Consumer Debt Help Association is not a law firm and we do not provide legal advice. We are sharing public information, which can be found online. If you have a legal question, please consult an attorney.


Believe it or not there are actually rules to protect you against harassment from debt collectors. Simply put, these collectors may not harass, oppress or abuse you. This goes for any third parties they contact too. Some examples that are considered harassment and are NOT allowed: publishing a list of consumers who are not paying their debt (credit card bureau aside), use obscenities, issue threats of harm, or use the telephone to continuously bother someone.

False statements.

Debt collectors are prohibited from using false and misleading statements when trying to collect a debt. An example of this is falsely implying that you’ve committed a crime, misrepresent the amount of your debt, falsely imply that there are attorneys, lie about legal documents being sent to you or falsely reporting that they work for the credit bureau.

harassment from bill collectors


Threats are simply NOT allowed by debt collectors. They may not threaten your arrest if you do not pay. They may not threaten to seize, garnish or sell your property or wages. The only time this is prohibited is when the collection agency DOES in fact intend to do so, and provided its legal to do so. Debt collectors may NOT threaten legal action when they have no intention to file suit.

False information about you

It is illegal for debt collectors to give out false information about you to anyone (this includes the credit bureau). They may not send you false court or government documents.

Unfair practices

Debt collectors have rules that they should be abiding by. One such rule is that they’re not permitted to engage in unfair practices when collecting a debt. Some examples of unfair practices are trying to collect an amount greater than what you owe, depositing a post-dated check prematurely, contact you by postcard, make you accept collect calls or make threats on your property unless this is an actual legal action they’re taking.


We are here to help YOU. The Consumer Debt Help Association was created to help people get freedom from the burden of debt. Our goal is to make a positive impact on your life through our debt negotiation expertise. Through our debt negotiations, we are providing a way for you to become and continue to live debt free. We respect your privacy and will never outsource or sell your personal information. Our negotiation experts are here to provide you with all the support, guidance and information you need togo through this process. We want you to be fully informed and will share our vast knowledge regarding debt negotiation. Our company complies with the AFCC, IAPDA, USOBA, and other industry organizations. We are proud to have a team of IAPDA Certified Debt Arbitrators as our negotiators with years of experience settling debts for all our clients.

What we do

Simply put, we negotiate your debt down. We are a financial services company that works to get the best debt settlement for you. Debt negotiation and debt settlement are tried and true practices. Unsecured creditors work with us to offer you less than what is owed in order to settle a debt. Debt settlement is an aggressive approach which can save you money and time and ultimately lead you to debt relief. Our representatives can help you figure out if this is the best approach for you.

For many people, debt negotiation is a more effective solution than consolidating, filing bankruptcy or refinancing your mortgage. After our negotiations, the creditors will agree to lower the balance (the pay off amount). This will either be paid with a term settlement or a lump sum payment. Once payment is complete, the creditors will then update their reporting with the credit bureaus to either resolved or fully settled. Each case is unique and each process is therefore there are many variables to consider.

Our services can be extremely helpful when trying to get your finances back on track.
Here at Consumer Debt Help Association, we offer financial consultations so that we can figure out if debt negotiation is the best tool for you currently. We go over your income, assets, expenses, budget and of course the current status of the accounts you would like to negotiate. During your consultation we will provide you with an estimate of what you will be able to save monthly and overall by utilizing debt settlement. If at that point you decide our services are right for you, we will set you up with an agreement with Consumer Debt Help Association, provide you qualify. Next step is our negotiations on your behalf.

How It Works

Once you’re signed up we advise your creditors of our involvement on your account. We ask that your unsecured debt creditors communicate with our office directly. This will provide some relief to you from the constant stress of calls, letters and emails from debt collectors.

Once our debt negotiator has successfully reached a settlement, we obtain letters from your creditor so that we have the agreement in writing. Then once the letter is received, we will notify your and you will have the option of rejecting or accepting each offer. Once a settlement has been agreed upon, the creditor will get paid and we would then earn our performance fee on that particular account.

What types of debt do we negotiate?

We are proud to have a strong team of certified debt negotiators. We are able to negotiate most unsecured debts, and are especially successful with major credit card issuers and banks. This is extremely helpful as most of our clients have significant credit card balances.

We’re also able to negotiate:

Credit Cards

Credit cards utilize a revolving debt system which means that you can continue to borrow monthly, as long as you repay enough. This debt requires you to stay under a set limit.

Lines of Credit & Personal Loans

A line of credit is similar to a credit card in that you are given access to funds up to a set limit. With a line of credit, you borrow as needed up to your limit. A personal loan is money lent to a person, typically with a fixed interest rate.

Some Student Debts

If a federal student loan has had past due payments for 270 days it is considered in default. Lenders require your student loans to be in or near default before starting negotiations for debt settlement. Private student loans very in time lines for default with the average being 120 days.

Medical Bills

Medical debt differs from other forms of debt as it is typically incurred by accident. This debt is the money owed due to health care costs as well as related expenses. Please contact us to learn about the consequences of choosing to pay off your medical debt with credit cards.

Charge Off & Repossessions

These two terms are not inter-relatable. A repossession is when a vehicle is taken and returned to the financier. A charge off is when the vehicle that money is owed on cannot be recovered. In this case, the loan valance is written off as bad debt.

Business Debts

A loan that is given when a company needs money for operating needs is a business debt. This method of financing comes with a promise to repay the loan. This debt can be either priority or non-priority, with priority creditors having much stronger powers to get their money back.

We’re not able to negotiate:

IRS Debt & Back Taxes

If you currently owe the IRS any money, this is considered tax debt. This is debt that we are unable to negotiate. This is regardless of if you filed your taxes on time.

Utility Bills

Utility bills are made up of those services used in the home, namely electric, gas, water and garbage disposal. Since cable and internet are almost the standard in American homes, these bills are also considered utilities.


Creditors sometimes take the legal route and file a lawsuit for debt owed. This is an extremely effective form of debt collection as once a judgement is made, creditors can then garnish wages, place a lien on property as well as seizing funds from your banking accounts.

Auto Loans & Government Loans

An auto loan is one that is taken out when purchasing a car. Any loan that is subsidized by the government is a government backed loan. These loans are often offered to borrowers at lower interest rates as there are systems in place to protect lenders against defaults on payments.

Mortgage or Home Loans

When purchasing a home, the contract between a borrower and a lender is known as a mortgage. A mortgage or home loan is used for the purchase of any type of dwelling. When the homeowner stops paying the mortgage, this is known as a foreclosure and the home is now deeded to the bank.

Other Secured Debt

What makes a debt secure? This is when the borrower pledges some asset as collateral for the loan. The debt is now secure since the collateral is set up invade of failure to pay the debt. Unsecured debt is based on the borrower’s promise to pay as well as credit worthiness.

Do you Qualify for our Debt Relief Program?

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Our Track Record Of Success

  • Better Business BureauA+ Accredited Business
  • Google Reviews – 4.9 out of 5 Star Reviews
  • Insider Pages Reviews – 5 out of 5 Star Reviews
  • Next Biz Reviews – 5 out of 5 Star Reviews
  • Insider Pages Reviews – 5 out of 5 Star Reviews
  • Show Me Local Reviews – 5 out of 5 Star Reviews
  • Manta Reviews – 4.9 out of 5 Star Reviews
  • Yellow Pages Reviews – 4.9 out of 5 Star Reviews
  • Trust Link Reviews – 5 out of 5 Star Reviews

Common Debt Settlement Questions

  • Is the Consumer Debt Help Association legitimate?

    Absolutely! We are a company that has been in the financial services world for almost two decades. Consumer Debt Help Association has been doing debt negotiation for over 15 years. We work directly with credit card companies, banks, collection agencies daily and with that have created great relationships with the creditors. This is extremely convenient and helpful to you, our client. Our proven track record shows we are stellar at settling client debt for significantly less than what they owe. All this and we do not charge upfront fees! We are a performance driven company and will only get paid once we have successfully negotiated your debt settlement. You have nothing to lose!

    Don’t just take our word for it- read what our clients have to say about us. We provide top-notch service and are proud of our A+ rating with the BBB. Feel free to go online and google us to read real results from our clients.

  • What is the CDHA Debt Relief Program?

    Just as the name implies, we are here to offer you relief from your debt. Here our goal is to get you the lowest possible settlement on each account. We do this by negotiating with the creditors to significantly reduce the balances owed. A perk of our program is we do not charge a fee until we have settled your accounts and your creditors have received their first payments. We are vigilant in monitoring our client’s payments and help to ensure they are adhering to their Monthly Savings Schedule that we create for them. This helps to accumulate funds so that when a settlement is reached, their is money available to pay the creditors. All payments for all accounts are deducted from the client’s dedicated savings account with a traceable payment to ensure payment is applied accurately. This same process is repeated for each card/debt enrolled in our program.

  • How can I remove my debt without paying?

    The great part about our program is every case is unique and every settlement is different. So until you try you won’t know much money we can save you. If you’re experiencing financial hardship or even if you’re just trying to lower your bills and payments, you came to the right place! Our debt negotiations are accredit and experienced. We will work directly with your creditors to get the absolute best settlement on your behalf. Some creditors are fine with settling for pennies on the dollar! Bankruptcy is not the answer. Before taking such a drastic route, talk to us and let’s figure out the best solution for you.

  • How does Debt Settlement affect my credit?

    Unless you have been making the minimum payment monthly and on time, your credit is affected. One of the criteria to be eligible for our program is the account has to be delinquent. This will have a negative impact on your credit. Your score will be affected by participating in our debt negotiation program and unfortunately this is unavoidable. Over time your credit will improve if you take the necessary steps. The majority of our clients are turning to debt settlement for debt relief. The priority is taking care of the debt. Our program is for people who are struggling to make their payments or who have already fallen behind. This is most likely not the best option for those who have the ability to pay their creditors on time and are able to keep their accounts current.

  • How much does this Program cost?

    If you were on the fence if debt settlement is for you, then this should help you decide. There are NO upfront fees! We are a performance based company and only get paid when we reach a settlement for you and you start payments. We will collect a fee from your dedicated savings account that we set up for you. This fee is only collected when your creditor receives the first payment on your settlement account. Our performance fee is fully disclosed in your initial enrollment agreement. This is a win win for you, the client. If we are unable to reach a settlement for you, we do not get paid. Please contact one of our representatives to find out the exact fee for you state as some states have varying fee restrictions.

View More Debt Settlement Letters

Betty Becker

“Consumer Debt Help Association is completely genuine and reliable. To point out they do all the work, negotiating with the creditors and settling debt eventually with the least cost to you. All things considered their fee is based on the amount of debt you have and is fair and smaller than what I was paying the creditors. Account Manager was always respectful, efficient and well-informed. To sum up call them today to help you with Debt Negotiation services!“ Click Here for more 5 Star Review’s on Google

Betty Becker - Aberdeen Florida 33401

Essena B.

“Absolutely amazing services. After all everything went smoothly and completed with the program prior expected! ” Click Here for more 5 Star Review’s on Yellow Pages

Essena B. - Lake Worth, Florida

Alex Brown

“To point out Consumer Debt Help provided Debt Negotiation services and worked hard to help fix my credit card debt headache. Another key point the staff was always sincere and clear about the process. Depending upon the debt company, CDHA was able to make terms most debt to half of what I originally owed. This is a legit company. I’m glad I stuck it out and trusted CDHA. Important to realize that now I’m debt free!” Click Here for more 5 Star Review’s on BBB

Alex Brown - Florida

Rachel W.

“This company is extremely effective providing Debt Negotiation services. Everyone I dealt with was shocking, professional, personable, respectful and fought for a reasonable resolution. To clarify I would recommend them to anyone with Debt Negotiation issues 10 out of 10 times. ” Click Here for more 5 Star Review’s on BBB

Rachel W. - Aberdeen Florida 33401

Lee W.

“Consumer Debt Help has been a unreal company to work with. All my questions where promptly addressed in detail. For this reason we would recommend National Debt Relief to anyone struggling to take back their finances and move forward debt free.” Thank you!!! Click Here for more 5 Star Review’s on Yellow Pages

Lee W. - Aberdeen Florida 33401

Arthur J.

“Consumer debt Help assisted me in digging myself out of a hole deep hole with credit cards. After all they explained the process in great detail, specifically how to handle my Florida State laws in33401 zip code. My Agent, would contact me monthly to see if I had any questions or concerns. I would like to say “THANKS” to everyone involved. ” Click Here for more 5 Star Review’s on BBB

Arthur J. - Aberdeen Florida 33401

Leslie O.

“Consumer Debt Help was unbelievable and very efficient. First, they explained everything in detail. Second, did exactly what they agreed. Third, they followed through. In this moment, I recommend them highly. “ Click Here for more 5 star review’s on Yellow Pages

Leslie O. - Aberdeen, FL

Spencer Sterling

“I had an absolutely first class experience with this company. Not to mention my Agent for the most part took me through the signing on process to the concluding communication. Generally speaking I received confirmation the completion of my contract, the co-operation, Debt Negotiation service and support I received.” Thank you CDHA Click Here for more 5 Star Review’s on Google

Spencer Sterling - Palm Beach County Florida


“The experts at Consumer Debt Help were consistent and pleasant as they helped me manage my credit card debt. To summarize they settled with my creditors and walked me through the process step-by-step. All in all their Debt Negotiation services included legal representation and credit repair aid after my debts were all paid in full.” Click Here for more 5 Star Review’s on Google

J M - Florida

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