Debt Settlement Services

A Debt Settlement is a process used by both debtors and creditors to settle a debt for less than what is owed. The process is also called Debt Negotiation and Debt Reduction. Most often the process is used to negotiate a credit card Debt Settlement.

If negotiated properly on behalf of the debtor a debt settlement can quickly and dramatically reduce the debtor's debt. Debt settlements range from 30% to 70% of the current debt, with the typical debt settled for 45 cents on the dollar. After paying agency fees, a typical client realizes a savings of around 20% to 40% of their original debt placed in the program. Most debtors resolve their debt within 1-3 years!

Debt Settlement Programs, their fees and results can vary greatly depending on many factors, including, but not limited to, state laws, the skill of the settlement negotiator, who the creditors are, and the professionalism of the debt settlement company.

While some debtors may want to negotiate their own debt settlement, it may be best working through a professional debt settlement company who knows the ropes and can watch out for the debtor's best interest. There is definitely a right way and a wrong way to handle this procedure.

Please note however, that there are many companies that offer debt settlement services who make false claims and fail to meet its stated obligations. Before contracting with any agency be sure to do your due diligence. Research the company, their BBB report, ask questions, get references and be sure that you completely read and understand any contract that you are required to sign.