You speak with a debt specialist who reviews your total unsecured debt, monthly income, and financial hardship. They’ll explain what you qualify for, estimate your potential savings, and walk you through the program timeline. There’s no obligation to enroll.

You enroll your qualifying unsecured debts into the program — typically credit cards, medical bills, personal loans, and some private student loans. Secured debts like mortgages and car loans cannot be enrolled. The company provides a written agreement detailing the fee structure and program terms before you commit to anything.

Once enrolled, you stop making payments to your enrolled creditors. Instead, you deposit a set monthly amount into a dedicated savings account — typically an FDIC-insured account held in your name. This account builds up the funds that will eventually be used to pay settlements. This step is what causes your credit score to drop during the program.

Your settlement company notifies your creditors that they are authorized to negotiate on your behalf. Collection calls may increase during this period as creditors attempt to collect. You can direct all creditor communications to your settlement company — you don’t have to deal with calls yourself.

Once your savings account has enough funds — typically after several months — your company begins negotiating with individual creditors. Negotiations happen one creditor at a time, starting with those most likely to settle. The goal is to get each creditor to accept a lump-sum payment significantly below the balance owed.

When a creditor agrees to a settlement amount, you are presented with the offer before anything is finalized. You review the terms and approve or reject the settlement. Reputable companies will never settle a debt without your explicit approval. Once you approve, the settlement is paid from your savings account and the company charges its fee for that debt.

Settled debts are marked as “settled” or “settled for less than full amount” on your credit report. This is less damaging than an unpaid collection or bankruptcy. Once all debts are resolved, you’re free of those obligations. Most people begin actively rebuilding credit with a secured card or credit-builder loan and see meaningful improvement within 12–24 months.