Debt Mediation

Debt mediation is working with your creditors to find an affordable solution for you, that is also good for the creditor. You may receive a discount on the balance of your loan for a payoff in full, or you may receive a new payment plan that fits your budget.

Debt mediation can be a great strategy, but may not meet the needs of everyone. After essential family expenses, do you have enough income to pay your bills each month? If not, you may have a hardship that qualifies you for a discount on a debt or for a revised payment plan.

If you are in over your head financially, and you would prefer to work things out with your creditors instead of considering bankruptcy, debt mediation is an honest and ethical strategy.

FAQs - Debt Mediation

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How does debt mediation work?

  • Merit Consumer Services gathers information from you about your debts, finances, and your family and their needs. We analyze this information and present it to your creditors in a way they will better understand your hardship. The better they understand what you are struggling with, the faster they respond to our proposed solution and the more likely they are to agree.
  • Sometimes creditors will respond with a counter-proposal. We present their proposal to you and you decide what you want to do. If you reject their counter-proposal, we will gather more information and repeat the process until you and the creditor reach a final agreement. If you accept their proposal, then you will make the payments directly to the creditor.
  • You are always in control of the final decision and you are always in control of your money.

Is it possible to borrow the money to pay a discounted settlement amount to a creditor?

  • Yes, if you qualify. There are lenders who will make a consolidation loan for the amount of the discounted settlements. If you would like Merit Consumer Services to help you find a consolidation lender, we can provide that assistance.

How much discount can I expect?

  • There is no single answer to this question. Every person’s situation is different. Our goal is to clearly explain your hardship to the creditor. The more information you provide us, the better service we can provide. Depending on your individual financial situation and the number of past due payments, the discount will vary. On average, we see discounts of about 50% of the balance.
  • Remember, you always control the final decision to accept or reject any offer we present to you.

What type of debts can you mediate?

  • The most common mediations relate to credit card debts, medical debts, some student loans, and personal loans.