Debt settlement, also known as debt negotiation, debt arbitration, or credit settlement, is an approach to debt reduction in which you and your creditor agree on a reduced balance of the debt that will be regarded as payment in full.


As long as you continue to make your negotiated monthly payment, your debt will not grow.  It is crucial for you to make this monthly payment as part of your debt settlement.


You can arrange your own settlement by using advice found on web sites, hire a lawyer to act for you, or use a debt settlement company.  If you do use a debt settlement company, however, just make sure that you use a reputable one, or you may find yourself in an even worse financial condition than when you started (as they may have hidden fees, etc.).


Debt settlement programs can help you to drastically decrease the overall amount of debt that you currently owe.


Debt settlement can reduce your monthly payments, which can then increase your household cash flow and also reduce the stress that comes along with debt.


Most often, debt settlement is an alternative to over-extended consumers looking to avoid bankruptcy.Debt settlement will work for you to reduce your monthly payments by about 30-50% of what you are paying monthly now.  Debt settlement programs can help you establish a savings goal so that you can actually pay off your debt within 12-36 months, depending on your situation.Once you have begun to make payments that are more comfortable for you in the debt settlement program, they will then work to reduce your debts up to 40-60% of what you currently owe.Debt settlement can help you to accomplish your goal of getting out of debt soon so that you can work on other financial goals.


The Debt Settlement Consumer Bill which was recently signed into law caps the amount of money debt settlement companies can charge and greatly reduces up-front fees, so that if you do decide to use a debt settlement company to help you get out of debt, you will be protected.