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ABOUT SSL CERTIFICATES

Settlement Letter

Once the appropriate level of funds has accrued in a client’s savings account and a settlement has been negotiated, the next step for a settlement representative is to receive a settlement letter. *To see an example of a settlement letter, please click on one of the letters below. The settlement letter should outline the details of the transaction.

Lump Sum Settlement

There are two basic types of settlement agreements; a lump sum settlement and an installment settlement. The lump sum settlement is where the entire settlement amount is paid in a single payment. For example, let’s say Burden Free Inc is negotiating on a $10,000 credit card. During the negotiation process, our settlement representative gets the creditor to agree to a lump sum settlement for 30% of the balance. In this case our client would need to pay all $3,000 in a single payment. The client will need to have built up $3,000 in their savings account to take advantage of this lump sum settlement.

Installment Settlement

The other basic type of a settlement is an installment settlement. An installment settlement is where the settlement amount is broken up over a period of time so that the settlement is easier to payoff. This is type of settlement is what Burden Free is trying to achieve for its clients. Using the same previous example (a 30% settlement on a $10,000 account), let’s now say the settlement is an installment settlement. The total settlement payment is for $3,000. Let’s say the creditor agrees to a three month settlement and the payments will work as follows:

Installment settlements are typically broken up into 2-6 payments, but could be broken up over even a longer period of time. It is essential to not miss any payments on an installment settlement. If that occurs, the creditor will typically adjust the account balance for the portion of the settlement that has been paid, and continue to collect on the remainder of the balance. In other words you’ll lose the settlement offer and you’ll have to pay the full balance.

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* These letters are examples of past performance and are not intended to be a guarantee of any future settlement results. Individual results for each program may vary based on ability to save funds and creditors willingness to negotiate. Program does not assume any debt or provide credit score assistance. Program not available in all states, so please review all terms and conditions of program prior to enrollment.