Debt Settlement Reduction

Debt Settlement Reduction


Debt Settlement companies attempt to negotiate a lower balance on credit cards and negotiate a lower one time settlement for the consumer.

Reducing the total balance owed on one or more credit cards for a settlement is the first step taken by either a debt settlement company or the consumer. Credit card companies want their money but will often settle for a percentage of the total amount due to get an at risk debt off the books.

Consumers who have had a reduction in income through job loss or other reason, often cannot keep up on minimum credit card payments and other bills. They have the choice of letting the cards go into charge off status, collections or declare a form of bankruptcy.

Debt settlement allows the consumer to make an offer to a credit card company of a lower amount than the total owed. One way to get the most realistic and lowest settlement is to ask for a reduction in the total debt.

Debt reduction companies, which perform this task for a fee or a percentage of the amount saved, claim to have ways to get a larger amount reduced from the total debt. Most simply make repeated requests for a settlement offer to the credit card companies.