personal finance

Nationwide Debt Reduction Services and Scope of Work

in Opinion

Nationwide Debt Reduction Services is a company that helps people reach settlements on their debt. They serve clients from around the nation as all the necessary interactions can be done online. The way that the service works revolves around professional negotiations and savings. It starts with a simple application or a phone call where the customer describes their financial hardship. Then, Nationwide Debt Reduction Services creates a monthly payment plan for them. The funds accumulated in that account will cover the down payment for the settlement. Typically, the entire endeavor takes around 36 months and saves over a third of the original debt.

Is there a specific type of debt that you see the most?

We work with a lot of student debt claims. Those types of customers are generally in their late-twenties, have a full-time job, and decent-sized income. The problem for them, however, is the interest that kept adding up on the outstanding balance of their student loans. Thus, whatever they owed when they were in college was a lot less than their current balance.

How do you persuade debt collectors to settle?

We rarely have to push hard for settlements to take place. After all, the parties that are collecting the debt want to receive the funds just as badly. Once they realize that their best option is to take a settlement, they generally do so. Additionally, we have long-term relationships with a lot of debt collection agencies.

Is there a typical timeline for these procedures?

Not exactly. Cases can range from 6 to 36 months depending on the amount, type of debt, and financial hardship. For example, someone who has very firm evidence of their hardship is easier to work for. Those who do not have all the paperwork, on the other hand, will see longer procedure times.

How do you make money from the settlements and negotiations?

First, I want to disclose that the Nationwide Debt Reduction Services does not charge before a settlement is reached. Our system is based on performance which is why there is a delay in payment. Meaning, we do not want the customers to pay us until we achieved some results. Thus, we will begin charging only after a tangible settlement offer gets sent.

Will the customer’s credit be affected by the inquiry?

Yes. First, they will receive a mark for taking the settlement. Although this will reduce their credit score slightly, the reduction is short term. Once they start reporting zero debt in the months after the settlement is paid, their score will rise. Therefore, it is almost like an investment into your credit. You must take a very brief reduction in the score to achieve an overall improvement.

How does your service compare to what your competition offers?

That is a great question that we actually answer on our website. We offer people a free debt calculator that shows our offer compared to three alternatives. Those include debt consolidation, credit counseling, and minimum payments offered by debtors. Consider, for instance, a comparison of an amount like $20,000 and a ten percent interest rate. First, the most common route will be just to keep covering the minimum payment. Creditors offer this option just to collect enormous amounts of interest over an extended period. Thus, for a $20,000 charge, you will end up paying almost $30,000. The second option is a debt consolidation loan that will accumulate to a little under $27,000. Then, the all-time worst option is credit counseling. It will cost you as much as $34,000 due to skyrocketing interest rates. Now, let us take a look at the settlement option. For $20,000 debt, it will take you about 2 years to pay, and you can expect to pay a little over $15,000.

How is it possible to pay less than the amount owed?

That is where our negotiating powers come in. We persuade the creditors to reduce the amount. Since they want the payment just as badly as you want to have no debt, settlements work. As depicted in the previous example, our methodology can save you money in the long run.

Can you discuss the scholarship opportunity that you offer to students?

We created a $1,000 scholarship for future or current college students. The only application requirement is an essay on the topic of financial stability. Our goal was to motivate individuals to learn more about their financial responsibilities. Hopefully, that can help them stay out of debt!

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