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Debt settlement program offers a borrower to repay the smaller amount of money that is owed. In most cases you can use this program only for unsecured debt, repaying your credit cards debt or covering medical bills. Some people do it on their own, but it’s always more safe to use the help of professional companies.

Negotiating debt settlement the customer should keep in mind two main goals. At first, you need to show that your financial situation is really desperate and you can’t make payments anymore.

This is done to make the creditor believe that it is the best variant to get more money while it’s possible. Secondly, you need to create a lump sum giving money to a debt settlement company.

So, the main goal of debt settlement program is to make your creditor forgive part of your debt, putting you in a desperate financial situation. In most cases, this process has a negative impact on your financial situation. You can’t control your finance and ruin your payment history.

Creditors may choose to settle your debt not to lose more money in case you file for bankruptcy. Also, selling your account to collection companies will bring them less money than signing such a program.

You can get some more information here as well:
Do I need a debt consolidation?