Debt Settlement is an excellent option for those of you who are ready to take care of your outstanding debt. The term debt settlement simply means how it sounds.  You the consumer always have options. 
There are a few different circumstances when it comes to debt settlement options.  The most easy is unsecured debt such as credit card debt.  If you owe a credit card $2000 and it has been in default, already become a collections account, and / or transferred completely to an outside collection agency, you could in fact settle this debt for up to 50% less than the total outstanding balance.  In some cases the debt is sold, or has been in collections for so long, that the creditor just wants to close the books on you, and the account, and get what ever they can out of you.  They are in business to make money, not lose.  In some cases, the banks do not budge, and usually feel that they can get more money by taking you to court.  It is important to understand your rights.  You must be sure that you have bargaining power when it comes to settlement of your debts.  The reason is real simple;  you strive to resolve all your debt with as little cost as possible.  It all adds up to simple economics.  If you can take five different creditors that are already in default, and pay them off for a fraction of the total balance, wouldn't you?  Of course you would.  You are in debt, and your goal is to get out of debt.  There is never a perfect solution to a situation that can make everyone happy, but in the rat race, we must all do what is nessesary in order to succeed!

Lets get started.

1. Please go to page "collection agencies", and read some of the different ways on how to deal with debt collectors. 

2. Make sure that the debt is valid.  If the debt is not valid, then go to "credit repair" page, if debt is valid then continue on.

3. Make sure that the statute of limitations have not expired.  Make sure the debt amount is correct, and ligitamate.

4. Gather all information regarding the account, and plan out your conversation with debt collector. When planning for your conversation, make sure of the following;
                       * Be sure you have a recording device with batteries, or a full charge hooked up to a land line type of phone
                       * It is always good to make notes, that could be used as quick references in your conversation.
                       * Be sure to ask the name of the person you are talking to first, then inform them that the call is being recorded in accordance with the FDCPA laws.
                       * Never admit to owing the money they claim you owe.  Never tell them, " This is my debt, and I messed up, and want to take care of my debt" or any           
                         combination of words that makes you sound not in control, and / or makes you sound like you accept the debt.  Even though you know it is your debt
                         it is not always a good idea to make their job easy.
                       * Never loose your calm, or patience with the person on the other line.  They are just doing their job.  The more angry you get, the more that the other         
                         person loses the ability and desire to cooperate with you.  You must remember that they are human after all.
                       * When settling a debt, use a phrase such as this:  " What are my options?" or " What is the cheapest way to resolve this matter?"  or " I would like to
                          make this problem just go away. I understand that you are claiming the balance to be $1000, but all I would be able to offer is $500. I can settle this matter today,     
                          the choice is yours."  If they try to counter offer, then you must state something like " Well it will take longer for me to have that amount. However, I do have  
                          this amount today."  If the collector feels like they are getting ready to lose you in the deal, they might compromise, and accept your offer.
                        * STOP! DO NOT BE QUICK TO SEND THE MONEY YET!!!
                        * Now that you have reached an agreement with the creditor and / or collector, you must obtain an agreement in writing.  It must be on official letter head, with
                          the creditor agreeing to accept this settlement offer, and upon reciept of payment,  providing you with a letter of release.  In the final negotiation, you should
                          try to get the creditor to agree to issue you a letter stating that the creditor will accept such payment as *settlement in full* and to agree to remove all
                          derogatory information from all three credit reports.