What Is a Debt Negotiation / Settlement Program?
A debt settlement / negotiation program was established to help consumers who are currently struggling to repay their high interest rate unsecured debts for pennies on the dollar. A debt settlement service can help to settle your debts for a fraction of what your currently owe, without the use of a loan or bankruptcy.

How Does a Debt Negotiation / Settlement Program Work?
A debt negotiation program contacts each creditor, serves as the point of contact for creditor inquiries, and negotiates reductions in the total amount of debt for as great a savings as possible as quickly as possible. Based on the availability of funds, they negotiates on your behalf to either settle for a reduced amount, settle for payments on the reduced amount, or to extend the negotiations until sufficient funds are available.

How Will a Debt Negotiation / Settlement Program Affect Your Credit?
Until the debts are settled, they appear as late. Upon acceptance of a settlement, the creditors agree to report "Settled in Full". "Settled In Full" is less positive than "Paid In Full", but much more positive than bankruptcy. The primary goal of the settlement process is to eliminate your debts for less than the full amount, and avoid bankruptcy.

How Does a Debt Negotiation / Settlement Compare To Bankruptcy?
Bankruptcy has negative emotional and financial ramifications. In addition to being the most derogatory mark on your credit report for ten years, future employers or lenders can question you on your bankruptcy indefinitely. In debt settlement, you are not running away from your debts, but you are paying what you can afford to settle the debts in full and avoid bankruptcy.

Why Would a Creditor Settle On a Current Account?
Each month sets new records for personal and business bankruptcies. Creditors realize that if they can collect something on the account, they are much better off than if they collect nothing.