If a consumer has more than $10,000 in unsecured (usually credit card) debt, Halo Debt Solutions will negotiate with creditors on the consumer's behalf to reduce payments. According to Halo's website, the average debt balance is negotiated down to 40 cents on the dollar.
Process
Monthly payments are saved in a "settlement" account. Several months' worth of payments are saved (during which time the consumer makes no additional credit card payments) and then Halo contacts creditors with settlement offers.
Potential Problems
Consumers who work with Halo Debt Solutions can be directly contacted by creditors, their accounts can be turned over to collections and they can be sued by creditors.
Better Business Bureau Rating
Halo Debt Solutions is accredited by the Better Business Bureau and has earned an F based on the number of complaints filed against the business, the length of time the business has been in operation, and concerns about the overall industry in which Halo operates.
Complaints
Customers have complained to the Better Business Bureau about Halo Debt Solutions' customer service, billing or collection issues, contract issues, refund or exchange issues and service issues.
Other Potential Solutions
Consumers with unsecured debt they cannot afford to pay do have options other than Halo Debt Solutions (or similar companies) and bankruptcy. Consumers can work with non-profit, accredited credit counseling agencies to learn about additional options.
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