Debt Settlement Case Studies

A married couple, “Rick” and “Jan”, in their fifties had credit card debt totaling $247,513.
They didn’t qualify for bankruptcy and the services of a consumer credit counseling agency would only reduce their monthly payments by approximately $225.00 per month. So they decided to pursue the debt settlement approach by retaining Donaldson Williams.
Rick was very nervous in the beginning. He was concerned about collection calls, the possibility of lawsuits, the length of time it might take to get his debts settled and simply not knowing what the end result might be.
Jan’s concerns had more to do with their children. She was worried that the discipline required to get through the program meant that the kids might have to “do without” while they were attempting to settle their debts and avoid bankruptcy.
The debt settlement process was a success. Start to finish it took 14 months to negotiate settlements on their accounts, which is 16 months quicker than Rick and Jan’s original goal.

End Result:

$247,513 of credit card debt settled for $90,363.

Debt Relief: $157,150

A married couple in their early fifties had credit card debt totaling $154,000. Their monthly payments were $4,300/mo..
When their business revenue decreased 40% due to a poor economy, they could no longer keep up with their credit card payments.
They explored consumer credit counseling services but the credit card companies would only agree to a small reduction in monthly payments ($4,100/mo) and no relief from the overall debt total of $154,000.
They didn’t qualify for debt relief through bankruptcy because they earned “too much money”, so they attempted to settle their credit card debt via negotiated settlements.
Our clients were able to set aside $3,700/mo for settlement purposes.
The debt settlement process took about 18 months.

End Result:

$154,000 of credit card debt settled for $55,980.

Debt Relief: $98,020

“Richard” and “Monica”, a deputy sheriff and nurse, were finding it nearly impossible to keep up with their monthly credit card payments, as their income was not sufficient to cover their household expenses, as well as all of their other monthly payments.
They considered bankruptcy and consumer credit counseling, but after learning that both of these options would be a 5-year commitment, they decided that it was best to take their chances and try to settle their debt instead.
They were extremely committed to their debt settlement program, picking up extra shifts and using any and all tax refunds to go toward their settlement fund.
The debt settlement process took exactly 23 months, and Richard and Monica are now debt free.

End Result:

$64,570 of credit card debt settled for $20,994.

Debt relief: $43,576

“Steve”, a single man in his early thirties simply started living beyond his means, using his entire savings for a down payment on a $550,000 home, not taking into consideration that such a home would require significant maintenance expenses.
Steve also decided to treat himself to a luxury vehicle, whose payment was $1,200 per month.
Unfortunately, in order to keep up with his household expenses and utilities, Steve started using credit cards to get by each month, ending up owing $92,245 to credit card companies.
Steve’s monthly credit card bills exceeded $2,100 per month, which he simply could not afford.
After a lengthy lecture, Steve’s father offered to provide Steve with sufficient funds to settle his debt.
The debt settlement process took eight months, and after a hard lesson learned, Steve is now free of credit card debt.

End Result:

$92,245 of credit card debt settled for $27,861.

Debt relief: $64,384

“Mike” owed $82,000 to credit card companies, and his payments exceeded $1,700 each month.
When Mike’s wife fell ill, and was unable to work, Mike could no longer afford to continue making his monthly payments.
He tried consumer credit counseling, but got discouraged after a short time, since he didn’t feel like any progress was being made toward paying down his debt. He also didn’t feel as though he should continue with a 5-year commitment, not knowing what the future would bring.
Mike’s income was too high to qualify for bankruptcy; therefore, he decided that debt settlement would be his best option.
Mike decided to take a loan against his 401K for $30,00 and start setting aside $800 per month to go toward his settlement fund.
The debt settlement process took Mike less than a year, and he is now debt free.

End Result:

$82,000 of credit card debt settled for $34,054.

Debt relief: $47,946

After “Carol’s” husband died of cancer, she found herself owing credit card companies $136,561.
With her savings depleted while her husband was unable to work, Carol didn’t have sufficient income to continue making her monthly credit card payments.
Carol was expecting the proceeds from a small life insurance policy, and decided that attempting to settle her debts for less than the full balance would probably be her best option.
The debt settlement process took Carol approximately nine months.

End Result:

$136,561 of credit card debt settled for $23,476

Debt relief: $113,085

“Robert” and “Mary”, a married couple with three small children found themselves with credit card debt exceeding $190,000, after a failed business venture.
Understanding that he had no choice but to seek employment, Robert knew he must avoid bankruptcy so that he could remain employable. After consulting with a consumer credit counseling service, Robert realized that the debt relief obtained through credit counseling would simply not be sufficient enough to resolve their significant credit card debt.
During this financial crisis, Mary became pregnant, and during a routine blood test it was determined that she had Leukemia. Obviously, this was a crushing blow, and they were forced to eliminate their debt one way or another so that they could focus on Mary’s health and the health of their unborn baby.
After becoming employed, Robert determined that he would be able to set aside $2,500 per month, obtain a loan from his 401K and even receive a loan from family, if necessary, to settle his debt.
Facing some obstacles along the way, as well as the devastating loss of his wife, Robert was able to settle all of his debt within a 24-month period. While this may be a successful end to a financial disaster, please know that our entire staff was heartbroken by the loss of this beautiful young mother. We have kept in touch with Robert’s mother, who is now living with him, and caring for his children, who are, fortunately, doing quite well.

End Result:

$191,815 of credit card debt settled for $85,878.

Debt relief: $105,937