How does the settlement payment plan work?

Your debt account will be in default in the debt settlement program. You will be sending your monthly payments to the trust account opened for this program. During this period, the settlement company contacts your creditors for a settlement amount and do the negotiations. It takes a lot of patience to find results in the program. Some creditors might accept the proposals from your settlement company earlier than others in the plan. A few may not also. But your settlement company has to be proficient enough to get the positive results for you. Finally, after the proposals are accepted by the company, money from your newly opened account will be sent to your creditors and the accounts get paid. The creditors will do the update with the bureaus.

When you are in default status on your file and until your proposal is finally accepted, your account will continue adding with the interests and fees because you are in a default stage. When the settlement company puts your proposal to the creditors, they actually negotiate for the total balance. So, these added charges can get waived off. Brush up your knowledge with an article on debt settlement at this link

http://www.debtconsolidationcare.com/debt-settlement.html

http://www.debtconsolidationcare.com/settlement/ccdebt.html