An Exceptional Offer for Deserving Clients

It’s always great news when we reach a settlement agreement for a client.  It’s even better news when the settlement produces a gross savings of over $16,000 for the client.

These clients are a married couple raising a family and have been in the program about 32 months.  They initially had 10 accounts and owed over $85,000 in credit card debt.  Provanta had already settled 6 of the 10 accounts.   This latest settlement was reached with major credit card company.  The current balance on the account was approximately $23,000 and the creditor was willing to accept a settlement of 30%, just a little over $7,000 and forgive the other $16,000.  Please keep in mind that this is an exceptional settlement, one that does not happen often.  Our average settlements are closer to 40% which is why this is such great news for our clients. 

Though the end result for this client is fantastic, it was a long journey to get to this point.  The creditor had consistenly rejected all of our settlement offers in the past.  At one time, the creditor even sent our client’s account to Arbitration because they did not want to consider settlement as an option.   We persisted with the creditor anyway, maintaining the posture that our clients simply did not have the means to pay the high balance.  We took advantage of every opportunity to remind the creditor that our clients had a financial hardship.  They were renters, they owned no assets and they had been unemployed and without income for 9 months before they finally decided to contact Provanta.  Our clients are not in our program because they thought this would be an easy way to get out of paying their debt.  They’re in our program because financially, it was one of the most effective ways for them to resolve their accounts and still pay the creditors something, albeit a lower settlment.   

Our persistence with this creditor paid off in the end.  Now we just have 3 more accounts to settle before these clients are completely debt free.

Technorati Tags: debt settlement, debt forgiveness, financial hardship, debt negotiation, debt arbitration

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