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Are you looking for different options to get out of debt?  You may have considered things like debt consolidation, consumer credit counseling, bankruptcy, or even doing it all your self with a snowball debt plan.  However there is one option you may not have considered, debt negotiation.

In this article I am going to take you through the process of how debt negotiation works.  By the end of this article you should have a clear understanding and know if this may or may not be for you.

The Debt Negotiation Process

• The first thing that will happen in the process is that you have to get accepted.  With companies like Debt Relief of America, and Debtmerica, you have to have at least $7500 to $10,000 of unsecured debt.  These are debts like credit card debt, personal loans, or even unpaid medical bills.  Secured debts like your mortgage and car loan will not be excepted unless they would happen to get reprocessed and the bank was unable to pay the entire balance of the loan.  The deficient balance could possibly be considered apart of the program.
• Second, once accepted the negotiation company will call all of your creditors and negotiate a deal with them.  Some debts will be cut down greatly, as much as 70% off, while others will only get 30% off.  If you haven’t been paying on your debts for a while the creditors may be more likely to make a deal.
• Third, once the deal is made all of your payments will be combined into one large payment and be paid directly to your debt negotiation company.  They will then disburse the funds to the companies the way they see fit.  This may or may not be in your best interest.  In some cases they may neglect a debt for a short period of time in order to pay off a few smaller debts at first. 
• Finally, the program will take around 3 to 5 years to complete but this doesn’t mean you will escape with a few bruises.  Discharging even a portion of your debt may cause the creditors to report this info to the credit bureaus.  This will certainly hurt your score especially if you had decent credit, but it will be much better than going though bankruptcy altogether.

So is this for you?  The best way to find out is to call them.  Most of them will give a fee consultation and show illustrations of what would happen if you pursued this option.