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How to Qualify for a Debt Settlement

There are essentially three key categories of criteria for determining someone’s eligibility to initiate the debt settlement process: the type of debt, the amount of debt, and the location of the consumer. More information on each is listed below:

What types of debt qualify?

Unsecured debts such as credit card debt, tax debts, medical debts and some personal loans and judgments may qualify for settlement. Credit card debts are the most common form of debt that is settled, especially as credit card companies have increased interest rates and fees on consumers during the recession.

Examples of secured debts that would NOT qualify are a home mortgage or car loan, since the lending company can simply repossess the underlying asset.

How much debt is required to qualify for a settlement?

Generally speaking, at least $7,500 in debt is required in order to qualify for a debt settlement program. If a consumer has less than $7,500 in debt, they might try negotiating with creditors directly, creating an individual savings plan, or taking a lower interest rate loan out against a secured asset (like a home) to pay off the higher interest rate debt and reduce monthly payments.

What states qualify for a debt settlement?

Assuming the criteria listed above can be met, we can help consumers in almost every state (there are some exceptions). The best way to ensure that you qualify is to complete the very short form at the top of this page for a free initial consultation. There is no obligation beyond the first call.

To learn more about qualifications in each state, please visit our debt settlement USA map.

For answers to more frequently asked questions about debt settlements, please visit our debt settlement faq.