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How to get out of debt I New FTC Laws I Does debt settlement work I Choosing a debt relief program I Debt Settlement or Debt Consolidation I Debt settlement and your credit I Can you settle your own debt I Understanding debt settlement fees I Debt settlement and your taxes I Can I be sued I Debt Help - Get Started today!

Debt Help

A 10 part debt relief guide

Part 10 - Go to Part 1
Get debt Help Getting the Debt Help that you need
In summation to our debt 10 part debt help guide, the final verdict is that debt settlement does work and it really does help consumers that are in need of debt help to get out of debt.

Yes, debt settlement is a somewhat aggressive approach to getting out of debt quickly but it is a viable solution for consumers that really only have the one last alternative of bankruptcy.

Although many consumers may be unsure of which way to turn or if legit debt solutions exist, the fact remains that reputable debt relief companies still act as an important and very valuable intermediary between borrowers and lenders. If consumers didn't have a chance to use due diligence and do the research to find reputable debt relief companies, they would be left completely on their own.

A good debt settlement company will negotiate with your creditors on your behalf and will be able to settle your debt for a much lower lower amount than you originally owed. has not only created this 10 step debt guide to help inform consumers of their options for debt relief but we have also researched dozens of Debt Settlement companies and have a created a list of what we believe to be the most reputable debt settlement companies. It just so happens that one of the companies resides here in the state of New Jersey. Although their offices are in NJ they can settle debt in all 50 states. The #1 debt settlement company that we recommended is Debt Consolidation Care. See our list of the BEST DEBT SETTLEMENT COMPANIES.


Debt Settlement is an effective way to get out of debt in the shortest amount of time, with the least amount of money and without having to file for bankruptcy. It is actually the next best thing to filing for bankruptcy with less repercussions and of course without having a bankruptcy appearing on your credit report. Remember that there are some con's to going through a debt settlement program. The first major con is that in the short term, your credit history will be damaged. Secondly, the IRS considers a forgiven debt as taxable income, so at the end of the year, they will expect taxes to be paid on the settlement. They do however have a form available for special hardships.


Q: What is debt settlement?
A: Debt settlement (also known as debt relief or debt negotiation) is the process by which a consumer or company negotiates a deal with their creditors to pay a small percentage of what they originally owe on a debt. Usually debts are negotiated down to 50%-60% of the original debt.

Q: Who qualifies for a debt settlement program?
A: For the most part any consumer that is facing some type of financial Hardship and is late on paying their debts are candidates for debt settlement. These consumers will usually have little or no ability to pay back their debts in a timely manner. In many cases these consumers are facing bankruptcy as their only last alternative. In many cases the consumer has to have at least $10,000 in unsecured debt to be eligible to enroll in a debt settlement program.

Q: What types of debt can be negotiated?
A: For the most part, any type of unsecured debt (credit card medical bills, signature loans, collections) can be successfully negotiated through a debt settlement program. An unsecured debt is one that is 
uncollateralized meaning no collateral was needed to get the loan.

Q: What types of debt cannot be negotiated?
A: Secured debts such as auto loans, student loans, home loans, second mortgages and lines of credit are not eligible for debt negotiation. It is also important to note that Federal student loans as well as Federal and State taxes (although considered unsecured), are also not eligible debt negotiation.

Q: Can commercial business debt be negotiated?
A: Yes

Q: Can IRS Tax debt be negotiated?
A: Yes

Q: What if a creditor won't negotiate?
A: In rare cases a creditor may decline a proposed negotiation. A good debt settlement company can look into the reasons of decline like for example, how far along the consumer is in the collection process, and in most cases can get the negotiation done by waiting a specified period of time. Some creditors are stubborn and others are willing to cut a deal, it depends on many variables, but eventually virtually all of the major creditors sell their accounts to collection agencies. These collections agencies which usually  acquire these accounts for pennies on the dollar are willing to accept settlement offer in which they still make a handsome profit from their original investment.

Q: Are debt settlement laws different in every state?
A: Yes each state has different debt settlement laws. Laws constantly change as legislatures enact new ones to protect consumers from dishonest companies that take advantage of consumers and unfair debt practices by collection companies and creditors. Every state must follow the federal laws that prevent a collections agency from harassment and telephone calls to consumers who send a Cease and Desist letter and/or a Power of Attorney notifying the collection agency that a third party is handling their negotiations with the creditor. Some states provide further protection that prevents the creditor from committing the same practices.

Q: Can my credit be repaired after I am done with debt settlement?
A: Absolutely. As a consumer, you have the right to contest any and all negative information that appears on your credit reports. If the credit agencies cannot verify the items within 30 day of the dispute, then by law, they must remove it from your credit report. Click here to get started today!

Need more help?
If you need help, act now. Check our reviews of the best credit repair services and debt settlement programs.
10 part debt guide

Part 1 - New FTC Laws
Part 2 -
Does debt settlement work
Part 3 -
Choosing a debt relief program
Part 4 - Debt Settlement or Debt Consolidation

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