When it comes to settling your debts, the best thing that you could do is to get in touch with a debt settlement company. You would find that this is the best option available if you have many lenders to deal with and if you owe them more than ten thousand dollars. The process of debt settlement involves a process where you would first contact your creditors and convince them to settle your debt for an amount less than what you owe. After this is done, you would start paying your monthly installments to your creditors normally through a loan taker. Most of us do not know that there are debt settlement services which actually go a step ahead and settle your debts for an amount almost half of what you owe. This is known as the forgiven debt. Once this has been done, you are completely free from these creditors and they will not bother you anymore. Instead, you can use this as a golden opportunity to settle your other outstanding loans so that you are able to clear all of your pending dues. You may wonder how the Debt Settlement services actually work. There are many companies who are experts when it comes to debt settlement. These companies are actually independent and they negotiate with the creditors on your behalf. They get the approval from the court and apply for a reduction, so that you pay back almost half of what you owe. The first advantage that you will have is the reduced rate of interest that you will be paying. If you use the debt settlement services to settle your debts, you would get a reduction of about 60 percent. What's more is that the remaining percentage can be paid by you in easy installments. So you can easily clear away your debt and lead a stress-free life. Another good thing about Debt Settlement is that it makes your outstanding debt disappear. When you file for bankruptcy, all your outstanding debt automatically disappears. However, you have to go through the long-drawn process of proving that you are financially unfit before your credit report is affected. This could take even many years. By using debt settlement programs, you can negotiate your debts even if you are already bankrupt. The creditors don't even have to receive anything in return of the reduction of debts. The government has exempted them from receiving any sort of advance payment from you. The only thing that you will have to provide them is the information about the companies that you have hired. You have the assurance that your debts will not be added to your outstanding debts again. Get facts and ideas at https://en.wikipedia.org/wiki/Debt_relief.