Debt Settlement, sometimes referred to as Debt Negotiation, is a process by which a creditor agrees to accept repayment by consumer or an amount less than the amount currently owed. This process is simply a negotiation and there is never a guarantee on what the outcome will be. Each creditor may react differently or may accept completely different terms than another creditor. However, when reviewing previous settlement practices of collection agencies and major credit card companies over the last 12 years we found that the average repayment is approx 40 cents on every dollar owed. In most cases no future interest will accrue once the account is sold to collections.

A typical settlement process:

After reviewing options, decide to enter debt settlement process
Stop paying creditors that will be negotiated with later
Start a savings account for future settlements
Once you stop paying your creditors, your accounts will be closed after month 1 or2
After months 3 or 4 the account will likely be sold to a third party collection company
Most successful settlements take place with collection companies so it should be looked at positively that the debt is bought by them
Once a settlement is reached, a fax is sent to the client to review and agree on
Payment is then forwarded to the creditor via the consumers savings account
A copy of the confirmation or payment is requested and filed

Someone that has experienced some kind of hardship. The following are all valid financial hardships:

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