Behind the Scenes: Your First Resolution Offer
It can be overwhelming to enter a debt resolution program without knowing exactly what to expect. But the clearer you are about what’s happening behind the scenes — and when you can expect results! – the more confident you’ll be.
Read on to discover crucial aspects about the first few months of your journey so you can start feeling excited about your first offer and the savings to come!
What’s Needed To Get an Offer?
There are two critical “ingredients” needed for our team to negotiate a Resolution Offer — time and funds.
🕛 Time
Creditors need to see proof of your financial difficulties before they’re willing to negotiate with our team and agree to offers. The most clear and direct way to establish this is by choosing to stop making payments directly to the creditor.
Each creditor has their own set time period for when they’ll be ready to negotiate — some creditors set this period at 90 days of non-payment, others at 180 days.
As the likelihood of them receiving direct payment decreases, they become more willing to negotiate. At this point, they’d rather collect some amount of the debt rather than none at all.
💰 Funds
Your creditors need to know that funds are being built up in your Dedicated Account in order to be satisfied you’ll be able to meet the terms of a potential offer. Typically a client needs to build up 15-40% of an enrolled account to give our team leverage to reach an offer for that debt.
PRO TIP:
Sometimes your original creditor will refer your debt to a collections agency to help with the collections process. If you receive an alert that this has happened, it’s normal! Just let our team know — we reach agreements with these 3rd-party agencies all the time.
When Will My 1st Resolution Offer Arrive?
Unless someone has already delayed payments to their creditor before enrollment, clients will likely see their first offer arrive 3–6 months into their program. The reason for this is directly tied to that necessary period of non-payment explained in the section above.
You may notice that the two periods mentioned above — 90 days and 180 days — directly link to the typical 1st offer timeline: 3 months – 6 months.
After this period elapses, the creditor has the proof they need that you’re experiencing a financial hardship. Our team is able to point to your growing Dedicated Account, and say “Our client is steadily making deposits and if you accept, they can repay a portion of the amount owed over this amount of time.” This is why we’re usually able to negotiate a client’s first offer so quickly after the period elapses!
Once in a while, a client may have to wait longer than 6 months to see their first offer. This is almost always because our negotiations team is strategically targeting one of your larger accounts first. In this case, creditors will need to see more funds built up before they’re willing to agree to an offer.
Final Words: We’re Here To Support You
It can require patience to wait to see for yourself that the process works, but you don’t have to do it alone!
Reach out to our team! We’ll always be here to walk you through your progress, help you understand what to expect next, and offer some words of encouragement.
Whether it comes at the 3-month point, or a little later down the line, rest assured that our team is ready to jump into action to secure your first offer as soon as possible!