Debt mediation is an informal process where a mediator negotiates with your creditors to lower your monthly payments — without placing you under debt review or affecting your credit record (initially).
🛠️ How it works:
- A mediator contacts your creditors.
- They negotiate reduced payments, extended terms, or even interest freezes.
- You make one affordable monthly payment, which gets distributed to your creditors.
⚠️ Important:
Unlike debt review, debt mediation is not protected by law, which means creditors can still take legal action if agreements aren’t honored.
🎯 Best for: People who are behind on payments but want to avoid the stricter structure of debt review.
💡 Tip: Always work with a reputable mediator — and get everything in writing.
