Loan is a provision of money borrowed from a financial institution (commonly called “lenders”) licensed for this kind of service. These establishments include banks, savings and loan associations and others. As a rule, every potential borrower is offered loans at personal terms taking into consideration his/her age, income, occupation, type of loan and its duration and/or other factors.

Regular clients of banks claiming force majeure circumstances which cause inability to repay debts, usually become subjects to debt settlement programs. Borrowers who were granted unsecured loans are obliged to go through such a program by law. For example, debt settlement USA legislation determines certain rights and duties both for borrowers and lenders as far as the issues of debt management, settlement maintenance and possible bankruptcy procedures are concerned. Debt settlement services include: cash advance (a service usually used for small-amount debts which supports a borrower and helps put off the final repayment); debt consolidation services (an option for several credits united into one with the purpose of preservation of the favorable interest rate). Debt consolidation loan also implies lower regular payments and longer repayment period.

A client who is in the need of a debt settlement program is required to have an interview with a loan manager. Every borrower is given personal approach; the both parties work out common strategy concerning further steps of a debt repayment. The client’s duties are to submit a necessary documentation pack. The manager’s work involves verification of data (to prevent possible debt settlement scams) consultation services and other functions.