Georgia Hardship Negotiation Savings Estimate
Compare estimated negotiated payments with paying the full balance yourself. A company negotiates with your creditors for you to lower what you owe. Your credit may be affected, and creditors may not agree. Under FTC telemarketing rules, which cover most companies that sell these services by phone, a company can charge its fee for each debt only after that creditor agrees to a new deal, you accept it, and you have made at least one payment under it. A dedicated savings account may carry separate fees. Canceled debt may count as taxable income (IRS Form 1099-C).
Frequently Asked Questions
How are savings estimated?+
The calculator uses 40 to 60 percent of enrolled debt as an estimated negotiated payment. The difference from the original balance is a potential saving before fees; creditor acceptance is not guaranteed.
Will every creditor accept an offer?+
No. Results depend on your creditors, account age, and finances. Some debts are ineligible, and creditors may continue collection efforts.
What happens to my credit?+
Missed payments and paying less than the full balance can lower your score. Recovery depends on later payment history; the 12 to 24 month estimate is not a guarantee.
What fees and taxes should I consider?+
Company fees commonly run 15 to 25 percent of enrolled debt. Under FTC telemarketing rules, which cover most companies that sell these services by phone, a company can charge its fee for each debt only after that creditor agrees to a new deal, you accept it, and you have made at least one payment under it. A dedicated savings account may carry separate fees. Canceled debt may count as taxable income (IRS Form 1099-C).