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 negoti-
ate with the creditors one at a time. All payments to the creditors will be made from this account.

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.

Unsecured debt is when a creditor holds no collateral. For example, an unsecured debt is usually in the form of: credit cards, department store cards, medical bills, and gas cards. No form of collateral such as a home or car was utilized to secure the "loan" for services rendered or goods received. With a secured loan, and as a precaution against "default" (non payment) what is used as "collateral" for the loan could be liquidated.