A Debt Reduction Settlement is a process used by both debtors and creditors to settle a debt for less than what is owed. The process may also be referred to as Third Party Debt Negotiation. If negotiated properly on behalf of the debtor it can quickly and dramatically reduce the debtor's debt. Settlements typically range from 20% to 80% of the current debt, with the typical overall savings being about 50%. Most creditors offer a special repayment plan to their customers who undergo financial hardship and enroll in a Debt Management Program provided through an established nonprofit consumer credit counseling agency.
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This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified creditors rights lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local creditors rights attorney to discuss your specific legal situation.