AMG Debt Settlement - Why it Works

Few people realize that there is a solution to stressful debt that doesn’t involve taking out a second mortgage (debt consolidation), or filing for bankruptcy, or joining an out of date & out of touch credit counseling program.  

That solution is debt settlement (also called debt negotiation) – good old fashioned American haggling.

Just imagine. If you could wave a magic wand and turn that $25,000 of credit card debt into $12,500; wouldn't that make a HUGE difference to your financial future? You bet it would! Most people are skeptical that this approach is possible. But if you have a professional debt negotiator on your team, the odds are very good that he or she can cut your debt in HALF or less.

How is this possible? It's very simple, actually. Put yourself in the shoes of a manager of a collection department for a major credit card bank. You know that bankruptcies are at an all-time high, that consumers file bankruptcy at alarming rates these days, and that the chances of collecting any money gets worse as the debt ages. You have the opportunity to close your books on a delinquent account by collecting 50 pennies for every dollar owed by the debtor, or take a chance on never collecting a single penny by trying to hold out for the full account value. You also realize that once the debt leaves your bank (usually after six months or so), it will go to a third-party collection agency. The agency will take at least 15%-20% commission right off the top of whatever they collect, and they are unlikely to collect more than 70% of the debt even with the most aggressive tactics. So you'll probably never retrieve much more than half the money anyway. When you look at it this way, collecting 50% now doesn't seem like such a bad prospect.

Is It Really That Easy?

Now, the way we've described it above, it sounds like a piece of cake. You might be thinking, "OK, I'll get on the phone and do this myself." What will happen? You'll reach the "customer assistance team" described above, and the representative will inform you that other banks may settle for 50%, but their bank never settles for less than 85%, under any circumstances. Then they may talk you into joining their “hardship program”, but this is nothing more than their attempt to keep you paying – if you are lucky they will just lower your interest rate which will lower your monthly payment.  This makes you think you are getting a good deal but you still have to pay off the entire amount plus interest.

After you've called five or six banks and received the same treatment, you'll probably end up with the idea that debt negotiation doesn't work. The problem is that the banks will rarely take a debtor seriously. Unfortunately, they simply don't believe you and they think your hardship story is phony. The banks are quite prepared for the amateur do it yourself negotiator. They have the telephone scripts all set up so that by the time the conversation is over, the caller feels guilty about the money owed, and their lame hardship plan sounds like a great deal after all.

We're professionals, but if one of us ever got into a financial pickle, we'd never try to negotiate our own debts. Instead, we'd hire one of our colleagues to do the job for us. We can't emphasize this enough. Just having a third-party professional on your team makes all the difference in the world. There is something almost magical about this simple approach. Once the banks realize that they are talking to a professional, someone who knows the rules and regulations, they then quickly change their tune.  Our teams of professional negotiators negotiate over $25 million of debt every month!  A negotiator will obtain better results than you could ever obtain on your own, simply because all of the bank's tactics are stymied by the fact that they can't talk directly to you. They can't apply psychological pressure to you, since your representative filters this out.

Besides, there's no shame in seeking help. Look at it this way: the banks pull out all the big guns when you fall behind. They have an army of collectors ready to pressure you with carefully scripted techniques. They have collection agencies and attorneys waiting in the wings to go after you full throttle. Doesn't it make sense to level the playing field? Doesn't it make sense to concentrate on improving your finances and let someone else deal with the aggravation of the incessant phone calls that start flooding in once you get behind?

Debt Reduction By As Much As 60%

Our Debt Settlement Program is actually quite simple. Your current level of unsecured debt will be skillfully negotiated for you, and essentially you will end up paying a fraction of the debt. Generally, we reduce your debt by 60% of the current total, on average. We will set you up with an affordable monthly payment, which is determined on a client-by-client basis between you and a counselor at AMG. Based upon what you are able to pay each month into your settlement account, we can determine how many months you will be part of the program, and ultimately be debt free. Throughout the program, we communicate with your creditors, on your behalf, and you will no longer be dealing with burdensome phone calls and letters from your creditors.

Upon enrollment, we typically contact each of your creditors, individually, and let them know that we are now representing you, and also let them know of your interest in settling your debt with them. However, with some creditors, it may be necessary to delay contact for several months after you are enrolled. This is all a part of our strategy and will be explained once enrolled. Reaching a settlement usually takes dozens of phone calls and communication between our negotiators and the creditor. Once a settlement offer has been reached, and you as the client have agreed on this amount, we will obtain that settlement offer in writing from the creditor and will then advise client on how to disperse funds to the creditor. At that point, the creditor has accepted the payment in full, and you are free of that debt forever. American Mitigation Group will diligently continue to work on negotiating all of your debts, until you are finally free from the once overwhelming debt that you started our program with.