What is debt mediation and how does it work?

Papers explaining 'what is debt mediation?'

Exploring your debt solutions can be a confusing and overwhelming process. If you are considering debt mediation but unsure if it is right for you, we’re here to help. Keep reading if you want to find out: “What is debt mediation and how does it work?

What is debt mediation?

Debt mediation is the process of allowing a third party to engage your creditors and negotiate your debts. The debts are then reduced to a more manageable amount. This amount can be paid off in instalments or via a one-time payment.

How does it work?

At United Debt Assist (UDA), when you begin the mediation process, our team will get to know you and your financial circumstances. Our team understands that there are a lot of factors that contribute to the accumulation of debt. We respect that your financial circumstances are personal and sensitive, so we will listen without judgement, in order to achieve the best possible result. During this stage, we will ask you to provide us with all of the relevant documentation, so we have the full picture of your situation.

As part of the next step, our specialists take over the communication with your creditors and debt collectors, as well as the negotiations, paperwork, and all required checks.

This is where we start to negotiate on your behalf. Once the negotiated-down component of your debt is paid out, the remaining balance is written off. Congratulations, you are now debt free!

What are the benefits of debt mediation?

Debt mediation is a very effective solution for people looking to refinance. Depending on your situation, we may be able to:

  • Significantly reduce your debt (our team averages a 60% reduction of your initial debt amount).
  • Freeze any fees and interest associated with your debt
  • Stop the stressful calls and emails from debt collectors and creditors.

Is debt mediation right for me?

After reading this article, we hope we have answered the question, “What is debt mediation?” and helped you understand how it works.

If you have any further questions or want to find out about our debt solutions, get in touch with the experts at United Debt Assist for a free initial consultation.

 

The information in this article is general in nature and does not take into account your personal objectives, financial situation, or requirements. Therefore, please consider whether the information is appropriate to your circumstance before acting on it and seek independent advice from a finance or legal professional if necessary.

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