Debt settlement, also commonly called Debt Negotiation or Debt Elimination, is an option for consumers who are unable to keep up with the minimum payments, want to avoid bankruptcy and cannot honestly envision being able to make progress in their financial life. Many consumers continue to find themselves stuck in the cycle of minimum payments and can’t see how they will pay off all their bills and still save for their future retirement, kids education or if there is an interruption in their income. With credit card (and other unsecured debt) elimination, consumers have the opportunity to take back control of their finances and redefine their financial future.

Debt settlement works by reducing the principle balance owed on your unsecured personal debt through the time-honored process of creditor negotiation. When you use a professional (law firm) to negotiate for you, they not only have working relationships developed with your creditors but, they also handle a large amount of accounts which give them volume discounts and better leverage than what you could achieve on your own. Debt settlement also affords you the time to save, instead of being pushed by your creditors, trying to come up with large sums to settle on their terms. (see: how it works, the process, why do creditors allow this).

This is different from simply reducing the interest rate and removing some fess as with Debt Consolidation and Credit Counseling, which do not affect the total balance. By reducing the balance itself, Debt Settlement / Negotiation provides a much faster means of becoming debt free. Most creditors are willing to accept a much smaller percentage of the balance owed in order to close out an account rather than lose the entire amount in bankruptcy proceeding. This process is also very lengthy and costly for them.

As a consequence of this approach, money that was previously wasted on endless minimum payments, going mainly towards interest, is applied to reducing the actual debt balance. That’s why Debt Settlement through Negotiation is the fastest Debt Elimination method short of Chapter 7 bankruptcy. If you are over your head financially and prefer us to work things with your creditors, then Debt Settlement can provide an honest and ethical debt relief alternative.