Professional debt mediation is the process of reaching a settlement between a debtor (the party who owes the debt) and a creditor (the party attempting to recover the debt) after negotiating a resolution. A mediator, or a neutral third-party representative, helps to arrive at these resolutions, which include payment plans, timelines, deadlines,...

Yes, debt mediation may cause your credit score to drop, as it indicates prior negligence to pay off one’s debt in its entirety. This suggests that the debtor has not fulfilled their financial obligations; in other words, they still owe money, which makes their credit score prone to drop some points.

While the act of receiving professional debt mediation is not legally binding itself, the actual settlement to which both parties have agreed becomes binding once it is signed. This means it is enforceable by law, which makes debt mediation a risky, yet worthwhile process.

It depends on the situation. It is important to first understand where the debt is coming from or why it is owed. Once this is determined, debtors can make their decision. For one, if a debtor is certain that they do not owe a specific amount of money, disputing it may be...

Mediation plays a significant role in debt collection, as a mediator is legally obligated to act impartially when it comes to settling this debt between a debtor and a creditor. The creditor will typically assign or hire debt collection to recover the debt or make plans to strategically recover it. If debt...

While there are many different methods that work in debt collection, several of them tend to work better than others. For one, giving debtors incentives, such as reduced payments or earlier deadlines, will persuade them to act more swiftly in paying the debt off. Additionally, pursuing legal action may lead to immediate...

There are five steps of professional debt mediation, including: introduction: assessing whether mediation is a good option or not by introducing both parties to each other and assessing whether the procedure is affordable and favorable to either.  evaluation: assessing whether...

Generally, debt mediation is considered to be better than taking matters of debt to court. This is because it is quicker, simpler, more efficient, more flexible, less time-consuming, and less formal. There is far less pressure to pay off debt at such a large sum with so little time.

Because mediation can only be executed in progressive steps and relies on multiple factors, it can take anywhere from six months to five years. This is based on how much money is still owed, how willing a creditor is to utilize the mediation process, and how quickly the debt can be paid.