Debt Minimum for Qualification

The average Provanta client enrolls approximately $30,000 of unsecured debt (mostly credit card) in our program.  Since most news reports state that the average American carries $8-$10K of debt, it’s understandable why someone with $30K of debt would need our help.  The discrepancy between what the average American owes and what our clients owe can also give our negotiators some advantage in the debt negotiation process.  The creditors and their collection agencies have more reason to accept our client’s financial hardship and work out a reasonable settlement arrangement.

But what about our other clients- the ones who owe a total of $5K, $10K or even $12K?  They’re not that far off from the average American so is it right for Provanta to help these clients resolve their accounts through our debt settlement process?  If so, is their situation more difficult for our negotiators since we may not be able to use some of the same arguments mentioned above?  Let me use the hardship of a newly enrolled client to address these questions:

Most of this person’s debt accumulated over the past three years.  He has been with his employer for over three years and has received consistent income.  However, just prior to securing this position, he was laid off for about five months.  He requires medication for high cholesterol, diabetes, and depression.  He is also paying for a breathing machine for sleep apnea.  At one time, he was paying over $300 a month in out of pocket medical expenses.  This has been reduced but it has not made things any easier.  The credit cards were used primarily for living expenses over the past couple of years.  More recently, it has become impossible for him to keep up with the minimum payments.  He cannot get ahead and elminate the debt on his own. 

Our client owes $11,000 in debt.  Although he may just be a tad above the average, his situation is anything but average.  He qualifies for our program because of his medical and financial hardship.  Our negotiators can use this information to effectively negotiate settlements regardless of whether his debt is above or below the average American’s.   

Although we may not be able to help everyone, Provanta will consider everyone’s situation to determine if debt settlement is the right option for them.  We do this regardless of the debt amount so long as the person is truly struggling. 

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