How Beyond Finance’s Debt Settlement Program Works

Beyond Finance is a U.S.-based fintech company that specializes in debt resolution and debt settlement services. Its core mission is to help individuals and families struggling with unsecured debt achieve financial freedom.

The company leverages technology, including a mobile app, to offer personalized programs that aim to simplify and reduce a client’s overall debt burden.

How Beyond Finance’s Debt Settlement Program Works

Beyond Finance primarily operates using a debt settlement model. This process involves significant risks and should be understood clearly before enrolling:

1. Stop Payment: When a client enrolls, they are generally advised to stop making payments to their original creditors.
2. Dedicated Savings Account: Instead of paying creditors, the client deposits a predetermined monthly payment into a dedicated savings or “Trust Account” (often FDIC-insured).
3. Creditor Negotiation: While the client’s account balance grows, Beyond Finance negotiates with creditors on the client’s behalf to agree on a lump-sum payment that is less than the total amount originally owed.
4. Settlement and Fees: Once a creditor agrees to a settlement, the funds are paid from the client’s savings account. Beyond Finance then collects its service fee, which is typically a percentage (often around 25%) of the debt enrolled in the program.

The goal is to get the client out of debt in 24 to 48 months and potentially reduce their overall payments by 40% or more.

Key Considerations for Consumers

Debt settlement is a serious step with significant financial consequences that clients must be aware of:

• Impact on Credit Score: Stopping payments causes accounts to become delinquent, which severely damages the client’s credit score in the short term. While the score is expected to recover after the debt is settled, the initial drop can be steep and can complicate immediate plans like renting an apartment or applying for a mortgage.
• Creditor Actions: Creditors are not required to negotiate or accept a settlement offer. During the negotiation period, creditors can continue collection efforts, charge late fees and interest, and may even sue the client to recover the debt.
• Fees Structure: The company’s fee is typically based on the amount of debt enrolled, and some customer complaints point out that these fees can substantially reduce the total savings achieved through the settlement.
• Debt Type: Beyond Finance generally handles unsecured debts like credit card debt, medical bills, personal loans, and certain private student loans. They cannot help with secured debts like mortgages or auto loans, or with federal student loans.

Beyond Finance highlights its focus on client advocacy, transparent processes, and the use of technology (such as its mobile app for program tracking) to assist clients in navigating the complex debt resolution process. They are accredited by organizations like the Better Business Bureau (BBB) and the American Fair Credit Council.

Are you looking for more details on the risks of debt settlement, or perhaps how Beyond Finance compares to other debt relief options?