An increasingly effective solution to high unsecured debt is a negotiation called debt settlement where your creditors will take less than what’s owed, usually 30-50% on the dollar, for full payoff on your unsecured debt. Why would they do this? When a consumer has suffered a financial hardship and defaults on their payments, the creditors know that they will collect little or nothing if the consumer files bankruptcy or can not pay. 

Remember that nearly all debt is negotiable – credit cards, lines of credit, store cards, business debt, medical debt, and collections. Taxes and student loans are considered Federal debt and can not be settled.

BE CAREFUL –  the markets are flooded with bad debt settlement companies who charge high fees and provide little or no service, bad advice, and even people trying to attempt important debt negotiations themselves. Consult a qualified attorney who specialize in these matters or speak to a debt counselor before attempting it
yourself.