How Our Debt Resolution Program Works
Debt settlement can feel complicated, so we keep it simple and transparent. Here is exactly what happens, from your first conversation to your last settlement.
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Step 1Tell us about your debt
Share a few details online or with our team: who you owe, roughly how much, and what you can realistically afford each month. It only takes a few minutes, and checking your options won't hurt your credit score.
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Step 2Get your free evaluation
A Meridian debt specialist reviews your income, expenses and hardship, then walks you through your realistic options, not just ours. If debt settlement is a good fit, you'll receive a written estimate showing your monthly deposit, your estimated program length and our fee, before you commit to anything.
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Step 3Enroll and open your dedicated account
When you're ready, we build a custom plan around your budget and help you open a dedicated account in your name. The account is FDIC insured and managed by an independent account administrator, [account administrator name], not by Meridian. You own the account, you can check your balance anytime in your Client Portal, and you can withdraw your money whenever you choose.
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Step 4We negotiate with your creditors
As your savings grow, our negotiators contact your creditors and their collection agencies to work out settlements for less than the balance you owe. We usually begin once enough has been saved to make a meaningful offer, often within the first [4 to 6] months. Many creditors will only consider a settlement once an account is past due, which is one reason your credit is likely to be affected (see What to expect, below).
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Step 5You approve every settlement
We bring every offer to you for review. Nothing is paid until you say yes. Once you approve, the settlement is paid from your dedicated account, and only then do we earn our fee for that debt.
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Step 6Finish your program and move forward
Each settled account brings you closer to the finish line. When your last enrolled debt is resolved, your program is complete, and we'll share practical steps for rebuilding your credit and staying on track.
Want to finish sooner?
There's no penalty for depositing more than your scheduled amount. Extra deposits can help us settle your accounts faster and shorten your program.
Where your monthly deposit goes
Every dollar in your dedicated account is used for just three things, and only with your authorization:
Settlement payments
Paid to your creditors once you approve each settlement.
Our fee
Charged only after a debt is settled and you've approved it.
Account administrator fees
[$X] to open the account and [$X] per month, paid to the independent account administrator.
Your deposits are never used to make minimum payments on your enrolled accounts.
Our fees
only as debts settle
We never charge upfront fees.
Our total fee is [XX]% of the debt you enroll. It's collected in portions as each individual debt is settled, and only after you approve the settlement and a payment has been made to that creditor. Your fee is shown in writing before you enroll, and it won't increase.
What to expect during your program
Your credit
Your credit score will likely go down while you're in the program, especially as accounts become past due. As debts are settled and your overall balances shrink, many people find they can begin rebuilding. We'll share tips to help.
Collection calls and letters
Creditors and collectors may keep contacting you, especially early on. You have rights under the federal Fair Debt Collection Practices Act, and we'll show you how to handle these calls and which letters to send our way.
Lawsuits
Some creditors may file a lawsuit to collect. If you receive court papers of any kind, contact us right away. You may also want to speak with an attorney in your state.
Interest and late fees
Until a debt is settled, the creditor may keep adding interest and fees. Our goal is to negotiate a settlement for less than you owe, even after those charges.
Taxes
If a creditor forgives $600 or more, it may send you and the IRS a Form 1099-C. Forgiven debt can count as income, although you may not owe tax on it if you were insolvent at the time. We recommend talking with a tax professional.
How debt settlement compares to other options
Swipe sideways to see the full table →
| Option | How it works | Your balance | Typical timeline | Credit impact |
|---|---|---|---|---|
| Debt settlement | You save in a dedicated account while we negotiate reduced payoffs with your creditors. | Enrolled debts may be settled for less than you owe. | [24 to 48] months | Likely negative during the program. |
| Credit counseling (debt management plan) | A nonprofit agency arranges lower interest rates, and you repay through one monthly payment. | You repay the full balance, often at a lower rate. | 3 to 5 years | Usually moderate. Enrolled cards are often closed. |
| Debt consolidation loan | A new loan pays off your existing debts, leaving one payment. | Not reduced. You may get a lower interest rate. | The loan term, often 2 to 7 years | Requires good enough credit to qualify. Can help if paid on time. |
| Bankruptcy | A court process that can wipe out or restructure many debts. | Many debts can be discharged (Chapter 7) or repaid through a plan (Chapter 13). | Chapter 7: a few months. Chapter 13: 3 to 5 years. | The most severe. Stays on credit reports for 7 to 10 years. |
Meridian is not a lender, and we don't provide credit counseling, bankruptcy or legal services. If another option fits your situation better, we'll point you in the right direction.
Find out what your plan could look like
Get a free, no obligation evaluation and a written estimate before you decide anything.