Debt mediation is a process that allows a consumer and a creditor to negotiate the reduction of the consumer’s monthly repayment commitments as well as the interest being charged when the consumer has been unable to pay what they owe for an extended time During the mediation process, a neutral and independent mediator helps the debtor and creditor to confidentially reach an agreement with either a lump sum payment or a lower monthly payment
Debt mediation is a way to get your financial life back on track instead of taking drastic measures such as filing for bankruptcy
WHAT ARE THE BENEFITS OF DEBT MEDIATION COMPARED TO OTHER DEBT RELIEF OPTIONS?
Debt mediation allows the debtor and creditor to negotiate a mutually beneficial solution to settling the debt, meaning
that both parties are involved in an agreement that works for them. This is not always possible with other debt-relief options.
It can help the debtor avoid the negative consequences of bankruptcy and damage to their credit score.
Debt mediation is a confidential process that allows the debtor and creditor to reach an agreement without involving the courts and avoids the expense of a prolonged court case and lawyers’ fees. The mediation process often settles in a more timeously fashion with fewer expenses.
While debt mediation has several benefits, it is important to note that it may not be the best option for everyone. All debt relief options should be considered before choosing the one that works best for your financial situation.
