What is Debt Settlement or Debt Arbitration?
Debt settlement or debt arbitration is a legal process used by both people in debt and their creditors to negotiate a settlement of an existing legal debt. Debt Settlement is not a Consolidation Loan or Consumer Credit Counseling Service. Any person owing credit card debt, or any other debt, has the legal right to contact and negotiate with the creditors, however this practice takes time to master and certain skills to get the maximum benefits. Crusader Consumer Services specifically reduces your current outstanding total balances 50-75% by negotiating an agreed payoff amount with your creditors.

How do the Creditors Actually get Paid?
When a client decides that this is the best program for them, we set up a special "debt settlement account" at a federally insured bank, which is in the client's name. The sole purpose of this account is to house the money the client pays toward settling debt on a monthly basis. Once enough money is accumulated, we will use it to negotiate with the creditors one at a time. All payments to the creditors will be made from this account.

How do I Pay for These Settlements, How Does it Work?
We work out a monthly amount that each client can afford to pay. That amount is electronically debited from their personal bank account and deposited into their "settlement account" at a federally insured bank on the date (s) they work out with our Debt Consultants.

When the client has accumulated enough money to cover the settlement and our fee, we contact one of the creditors and make them an offer. Offers are submitted until both the client and the creditor agree on the amount. We then get the client's written or electronic approval on the total settlement (including fees). Upon receipt of the client approval, the bank will release the funds necessary to cover the total settlement (including fees). Once this settlement is paid, the client will begin the accumulation of funds in their settlement account and the process will repeat as money becomes available for the next settlement. We continue in this way until all of the accounts are settled.

It is important to note that we do not make any monthly payments to the creditors and we cannot pay for a settlement without our client's written or electronic approval.

What Happens to my Creditors While I am on the Program?
Instead of your money going to your creditors each month, we will transfer the money from your personal account over to your settlement account per the schedule you create with us. You will continue to accumulate money in the settlement account until you have the money for us to negotiate a settlement.

The whole idea is that instead of paying the minimum payment or less each month and falling further and further behind, you will take the money you can afford and use it for lump sum settlements with you creditors.

Will the Creditors Start Calling and Harassing me?
Yes. As someone goes delinquent with their accounts, especially in the beginning, they will get creditor calls. However, we have developed steps that our clients can use that are effective in reducing and often eliminating phone calls from creditors

What Happens to my Credit?
If you are already behind on payments, or you might be shortly, your credit is already impaired - you have too much debt compared to your income. This is known as a high debt-to-income ratio. To be considered credit-worthy again, you must drastically reduce or eliminate your debt, thereby reducing your debt-to-income ratio.