In a debt settlement program, the creditor agrees to slash the outstanding balance of the consumer by a certain percentage after a successful negotiation process. The program is usually offered by a settlement company in exchange for a fee.

The best part of the program is that consumers can settle a debt for pennies on the dollar. They won't have to pay late fees, fines or penalties.

How much can you save?
Monthly payment you can afford

What is a debt settlement program?

A debt settlement program (also known as debt settlement plan) is a legal bill repayment method that is beneficial for both consumers and creditors in specific situations. It is a process wherein consumers pay less than what they owe after a mutual agreement with creditors. This program saves the time of creditors since they don’t have to get into the complex legal process of bankruptcy. On the other hand, consumers save a lot of money as they don’t have to pay the whole amount.

OVLG Debt settlement process – 5 Simple stages

Our financial coach reaches you over the phone. He analyzes your financial situation and decides if debt settlement is best for you.
If this program suits you, then he'll explain the fees structure and other details clearly. Once done, you've to sign an agreement with us.
You get an e-copy of the debt settlement agreement. A secured client secure area is given to you. You can track your case every minute.
The CRA (Client Relationship Analyst) opens a dedicated account in Bank of America wherein your money is saved every month.
The negotiation process starts to reduce the outstanding balance. Once the creditor is ready to accept the partial payment in exchange for a lump-sum payment, we will settle your debt.
NOTE: Once payment is done, the creditor will inform the credit bureau that you've settled the account.
Debt Settlement Pros
  • You can save a lot
  • Creditors can be less aggressive
  • You can avoid filing bankruptcy
  • You can avoid collection calls
  • Late fees and penalties will be dropped
  • You can ditch credit card debts within 3 years
Debt Settlement Cons
  • Your credit score will drop initially
  • You'll have to pay tax when you save more than $600
  • You have to abide by the settlement agreement

How does debt settlement work?

This debt relief option works on a very simple principle, and that is you have to pay less than what you owe. Usually, it starts working when you have missed payments on your accounts for a few months. A creditor is less likely to reduce your outstanding balance if there’s a reason to assume you can pay the entire amount.

When you miss your payments, creditors become anxious and worried. Settlement companies take advantage of this situation and negotiate with creditors to lower your payoff amount on the unsecured debts. The deal is you’ll pay a lump sum amount and the creditor will update your credit report as “paid as agreed” or “paid as settled” or “settled”. You’ll finally be debt free.

Why OVLG is the best debt settlement company

Why is Oak View Law Group unique? What makes it the best debt settlement company in the country? Find out on your own.

  • 1) Follows all the settlement laws
  • 2) Solves your debt reduction needs
  • 3) Have a panel of attorneys to help you
  • 4) Help you settle debt in 48 states
  • 5) Gives you a 100% refund policy
  • 6) Have a reasonable fee structure
  • 7) Offers easy to understand written settlement agreement
  • 8) Gives you FREE sample settlement letters
  • 9) Gives you an FREE advice on settlement
  • 10) Helps you calculate your savings
  • 11) Is a registered law firm
  • 12) Has a strong privacy policy
  • 13) Has a transparent work methodology
  • 14) Seek approval for all resolution offers

Can you do online debt settlement?

People are busy nowadays. They don’t have time to visit a debt resolution company physically and initiate the negotiation process, especially when everything can be done online. Nowadays, you can settle your debt online and get back on the right financial track. You can make payments online and monitor all activities 24*7. You don’t need to wait until the company gives you a statement.

Some other benefits of settling debt are as follows:

  1. You can get free debt settlement advice online
  2. You can use online tools to calculate how much you can save
  3. You can check out the debt negotiation services online
  4. You can pay fees within a few clicks
  5. You can save time since you don’t have to commute
  6. You can get strategies from experts in online debt forums to repay bills

How to negotiate a settlement with credit card companies

Settling debt with creditor is a tricky process. If you’re not good at negotiation, then credit card companies may not agree to forgive a big portion of your debts. In that case, you can leave the tedious task of negotiation on OVLG and relax at home.

How to negotiate with creditors for debt settlement

  • Examine your debt and your overall income
  • Use financial tools to choose the right payment plan for you
  • Call 800-530-OVLG to know how to negotiate debt settlement
  • Save money in the dedicated account to settle debts one by one
  • Let the Financial Coach haggle and reduce the outstanding balance
  • Read the final settlement agreement and pay money

Why it is good to consult a debt settlement attorney

Attorneys are there in the industry for several years. They know the ins and outs of debt settlement programs very well.

9 Reasons to consult a lawyer or attorney for settlement

  • 1 You don't have anything to worry. The attorney will look after your case.
  • 2 You don't have to receive collection calls. The attorney will handle them.
  • 3 Attorneys know what creditors can or can't do. So, they can plan accordingly.
  • 4 Attorneys know the latest FTC rules by heart. You might not know about them.
  • 5 Attorneys can negotiate very well. They'll probably save more for you.
  • 6 Attorneys may help you when creditor decides to file a case against you.
  • 7 Attorneys can safeguard you from collection harassment.
  • 8 Attorneys will give you the best legal advice.
  • 9 Attorneys can show you the other options as well.

Tips to choose the best debt settlement company

Yes, there are lots of tips to choose best debt settlement firms. Here are a few of them:

  • 1 Ask the company about how to settle the debt. A good one will know the program in details.
  • 2 Ask if it charges an upfront fee. A good one won't charge an advance fee.
  • 3 Check if it's a licensed company in your state.
  • 4 Find out its industry experience. The longer it has been in the industry, the better.
  • 5 Check and find out if its fee structure is acceptable.
  • 6 Go through the online reviews on the company.
  • 7 Ask about the right-of-rescission period.
  • 8 Check if the debt settlement company follow the FTC laws.


Settling with debt collectors is not an easy task since they are ruthless negotiators. They earn a commission on the total amount collected from collection agencies. So they always try to collect as much money as possible. You have to be really smart and know the FDCPA laws minutely to deal with them. Nevertheless, here are a few strategies you can use to settle with a collection agency.

  • 1 Check if the SOL period has expired. Collection agencies can’t sue you for the time-barred debts.
  • 2 Send a debt validation letter via certified mail to know if you really owe money.
  • 3 Call 800-530-OVLG and explain your situation to the Financial Coach.
  • 4 Act as per the advice of the Financial Coach.
  • 5 Save money and let the Financial Coach begin the negotiation process.
  • 6 Track your progress and complete the settlement process.
  • 7 Yay! You’re finally debt free.

The best debt settlement program can help you save a huge amount of money. It can help you save big on the outstanding balance, penalties, and late fees. If your accounts are past due for more than 180 days, then collection agencies may agree to cut down the outstanding balance by a big percentage since they are not getting money anyway.

Your credit score is likely to drop by a few points after you get debt settlement. The drop is marginal because your credit score is already very low due to delinquent accounts. When you’re past due on your accounts, your credit score drops significantly. When you miss payments on your accounts, it implies that you’re not a responsible borrower, and that is a red flag for the lenders.

Credit bureaus reward consumers for positive credit activity and penalize them for negative activities. So when negative information like missed payments is added on your credit report, your FICO score drops.

When you’re looking for debt negotiation services, you should get acquainted with the laws to avoid getting scammed. The Telemarketing Sales Rule was introduced in 2010 to safeguard the interest of consumers and prevent debt settlement firms from using fraudulent activities. Here are a few important laws that everyone should be aware of.

  1. Upfront fees: You’re not supposed to pay any upfront fee. You should pay a fee only after the settlement of debt. The company has to submit the complete settlement program and give the proof of initial payment made to the creditor.
  2. Disclosure: The settlement company needs to explain the entire program up front. They need to inform when you can expect to get debt resolution. Besides that, they are required to disclose the following facts to you:
    • The total cost of maintaining the dedicated account and the program.
    • Effect of the debt resolution on your credit report.
  3. Misrepresentation: The FTC prohibits misrepresentation of facts regarding debt settlement services. No false promises should be made and services should be clearly explained. The correct success rate should be revealed.
  4. Dedicated account: According to the debt settlement law, the company needs to meet the following conditions when setting up the dedicated account:
    1. The dedicated account should be opened in a bank that is FDIC insured.
    2. You’ll have the complete ownership of the account.
    3. You can withdraw money from the account anytime. You don’t have to pay a penalty for this.
    4. There shouldn’t be any kind of referral fee contract between the company and the bank maintaining the dedicated account.

Here you're talking about DIY debt settlement. Well, it's not for everybody, and this is why several consumers approach attorneys. Here are the 10 qualities you need to have to negotiate on your own:

10 Qualities you need to have

  • 1 You're less emotional and more practical
  • 2 You know the collection laws by heart
  • 3 You can talk sweetly
  • 4 You know how to manage collectors
  • 5 You can execute your debt settlement plan
  • 6 You have an idea about the collection cycle
  • 7 You know how fast you can arrange money
  • 8 You're diplomatic and can negotiate well
  • 9 You can convey your problems properly
  • 10 You can get everything in writing

Well, a lot of people refer DSP as:

  • 1 Debt negotiation programs
  • 2 Debt reduction programs
  • 3 Debt resolution programs

Next time, you hear these names, don't get awestruck.
This is nothing but DSP.

  • 1 Credit card debt
  • 2 Personal Loan
  • 3 Payday loans
  • 4 Utility bills
  • 5 Medical bills
  • 6 Collection account

It is registered with CalBar and Cal Chamber

Video transcript on: When should you settle debts?


It takes only a few seconds to decide if debt settlement would work for you. All you need to do is check out the types of debts you have.(pause)

If you have delinquent credit cards, personal loans, payday loans, private student loans, collection accounts, medical bills or utility bills, then debt settlement will definitely work for you. It helps you save 40%-60% on your payoff amount without filing bankruptcy. (pause) Also, you can avoid debt collection calls and late fees. (pause)

But if you have mortgage loan or federal student loans, then it won’t work. (pause)

Debt settlement will drop your credit score initially and you have to pay tax if your total savings is more than $600. But, it will gradually increase as you start following the tips given to you in the free budget counseling session every month.

Still Confused? Call our financial coach at 800-530-6854 to analyse your debt and make the final call.

Last Updated on: Tue, 18 Aug 2020