What we do
Debt Mediation and Intervention
In these trying times, it is easy to find yourself overwhelmed by all the bills stacking up and falling behind on debt. This leaves a lot of our clients with threats of repossession and black listing from financial institutions. This is where we come in. We step in on your behalf with methods of Debt Mediation and Intervention, in order to preserve good standing with the ITC.
Debt mediation is exactly what it sounds like: an attempt to settle debt through mediation. When you have been unable to pay your debts for a lengthy period of time, you are in a tough situation. Debt mediation, also known as debt arbitration, is a process that allows you and your creditors to reach an agreement that benefits both of you.
At ADB Financial Services we step in between our clients and their creditors, negotiating on your behalf to arrange for payment holidays, reductions and settlements, as well as writing off reckless lending and revolving credit. We do this with NO FLAGGING ON ANY CREDIT BUREAU.
What is Debt Mediation and Intervention?
Debt mediation is exactly what it sounds like: an attempt to settle debt through mediation. When you have been unable to pay your debts for a lengthy period of time, you are in a tough situation. Debt mediation, also known as debt arbitration, is a process that allows you and your creditors to reach an agreement that benefits both of you.
Debt mediation is sometimes known as debt settlement since it aims to reach an agreement that resolves the debt. Instead of taking severe steps like bankruptcy, you will be able to get your financial life back on track with this sort of consumer debt relief.
How Does Debt Mediation Work?
When your obligation has been unpaid for 90-180 days, you can start the debt mediation procedure. Your creditor may refer your case to a debt collection agency in certain situations. If a debt collector is assigned to your case, they will continue to harass you until you pay the obligation. If the debt is not paid, you may be served with a summons to court. You will have 30 days to respond after receiving a summons from the court. You should start debt mediation at this point.
Because no one wants to go to court, this debt reduction method is a win-win situation for both sides. Even creditors prefer not to go to court since it is time consuming and costly to pursue a debt to that extent. However, after failing to pay for a long time, they frequently prefer to go to court in order to have the judge seize assets in order to force payment. Most creditors would prefer debt mediation over going to court and, as a result, are more likely to consent to start the mediation process. Before pursuing the issue to court, some creditors may propose debt mediation.
How Does Debt Mediation Affect Your ITC Score?
The creditors are effectively taken off your hands when you attend debt mediation through a professional business. Every payment will be organized and handled when you make a single monthly payment, so any bad impacts on your credit record will only be temporary.
Your creditors will get money from the debt mediation business as long as you make your single monthly payment. They won’t have any late or missing payments to record as a result. Defaults will no longer be recorded to the credit bureaus, and your credit score will gradually improve.
Debt Mediation and Intervention is the most effective approach to get out of debt while preserving your credit score.
Creditor Harassment Can Be Prevented With Debt Mediators
The stress and tension that might arise between you and your creditors is reduced when you use a debt mediation firm, making things simpler for both of you. Another advantage of dealing with a debt mediation business is that they are able to stop creditors from harassing and scaring you. If you’ve been receiving a lot of calls or letters from creditors, your debt mediation business can work with them to get the contacts to cease. When you practice debt meditation, you’re demonstrating to your creditors that you’re willing to work with them to resolve your debt. This is frequently an indication that they need to stop pestering you.
Debt Mediation and Intervention is the best way of being Debt free, without damaging your credit score.
In Mediation, What Happens to Credit Card Debt?
Debt mediation reduces interest payments to a lower rate and reaches an agreement on the amount of principle reduction. This allows you to combine your bills, including credit card debt, into a single monthly payment.
As your debt management firm makes payments to your creditors, you will gradually be able to pay off your debt. Another method debt mediation can help you pay off your credit card debt is to make a single lump sum payment. This can be agreed upon in a settlement, and you will pay the agreed-upon sum to clear the debt.