What is Debt Settlement or Elimination?

Debt elimination is an alternative way to eliminate much of your debt if you meet a certain credit profile. You hire a debt settlement professional who will negotiate with your creditors to reduce the total amount of your debt. They usually try to reduce the total debt owed by 50% to 75% and get a single payment per month to pay down the new (reduced) debt balance. Once you engage a debt elimination company and have been qualified, they get your creditors to stop calling you. The company handles all future correspondence with your creditors. It is like a relationship with a lawyer, they represent you. They are going to do all the negotiation for you. All debt arbitration is dealt with by the company. Usually you are assigned a person who handles this for you. The company then starts the negotiation process. It doesn’t take a rocket scientist to figure out that the credit companies have lured people into a financial mess. Although we are all responsible for the debt we accumulate, the credit card companies are deceptive in the way they get people to buy into debt. I find it repulsive actually. The reason these slimy credit card companies are willing to reduce your debt by as much as 75% is because they realize you have lost in the game and are headed into bankruptcy. They may never get anything from the bankruptcy, so 25% is better than none. If you are in a desperate situation and want to avoid bankruptcy, it is an option. Make sure you contact a viable company with a good record. Check the BBB!