This document provides information about debt settlement. It defines debt and explains why debt is needed, such as for large purchases that cannot be afforded otherwise. Debt settlement is described as negotiating with creditors to pay less than the full amount owed on a debt. The benefits of debt settlement include potentially paying off debt sooner and stopping collection calls, though it can negatively impact credit and any amount written off may be taxable. Qualifiers for debt settlement are also listed, such as having a minimum of $10,000 or $15,000 in total debt and proof of a valid income source.

1. Debt Settlement
Presented By:
Syed Muhammad Ali

2. What is Debt?
 Debt is something, usually money, borrowed by one party from another.
“a sum of money that is owed or due.”
Why need Debt?
 Debt is used by many corporations and individuals to make large purchases that they could not afford
under normal circumstances.
 Loan and debt are terms often used interchangeably due to the reason that they both primarily mean
borrowing money.
 A simple rule about debt is that if it increases your net worth or has future value, it's good debt. If it doesn't
do that and you don't have cash to pay for it, it's bad debt.

3. Debt Settlement
> Why do we need to settle debt?
 For the borrower, debt settlement can provide financial relief and put them on the path towards
rebuilding their credit.
 For the creditor, debt settlement enables them to receive at least some of the money they're owed rather
than no money at all.
 Furthermore, it may mean the borrower can avoid filing for bankruptcy.
 settling a debt instead of paying the full amount can affect your credit scores.
 When you settle an account, its balance is brought to zero, but your credit report will show the account
was settled for less than the full amount.
 Settling a debt means you have negotiated with the lender and they have agreed to accept
less than the full amount owed as final payment on the account.

4. Pros & Cons
Pros Cons
Might be able to settle for less than what you owe Creditors might not be willing to negotiate
Pay off debt sooner Could come with fees
Stop calls from collection agencies Could hurt your credit
Could help you avoid bankruptcy Debt written off might be taxable
Debt settlement pros and cons

5. Qualifiers
 Total Debt Combined (min 10k & min 15k)
 Current or Behind on Payments
 If Current; Are you facing financial hardships at the moment
because of this debt?
 Employment Status or a valid Source of Income
 Not already enrolled with a debt relief company
 Transfer to Debt Specialist for options