A debt settlement is reached when a debtor is unable to fully
meet his/her debt obligations due to financial hardships and attempts by the creditor
to collect on the debt have failed. The creditor agrees to cancel part of the debt
and accept the remaining sum as full repayment. Debt settlement is also called debt
negotiation. In other words, a debt
settlement is the agreement while debt negotiation is the process through
which both parties reach that agreement.
Consumers who use debt settlement
are those who are experiencing legitimate financial hardships, cannot afford to
repay their debts through debt management plans offered by
consumer credit
counseling agencies and who also want to avoid filing bankruptcy. For this reason,
debt settlement falls between consumer credit counseling and bankruptcy.
Reliance Debt Relief has one of the strongest team of professional
debt consultants in the industry. Our team provides help in setting up payment plans
that work for you, and then negotiating settlements on your behalf. Our Debt settlement
programs are able to lower your monthly payments to approximately half of the typical
minimum monthly credit card payments, so you can
become debt free in a short period of time.
