If you have significant credit card debt, and are struggling to pay it off, you may have considered getting help from a debt negotiation firm. Debt negotiation can offer tremendous help in certain situations, but many myths exist about the process and the companies that offer this service. Understanding the realities can help you make an informed decision.
Companies that offer assistance with debt negotiation – also called debt settlement – negotiate with credit card companies, medical offices and or other creditors of unsecured debt. (Unsecured debt is debt that is not backed by a tangible asset, such as a vehicle or house). They work solely on a consumer’s behalf to reduce the debt obligation. When they succeed, the creditors agree that a consumer will pay a lower amount instead of the full total.
Debt negotiation can help a consumer get out of debt in 24 to 48 months. It can reduce debt load by as much as 50 percent