Debt settlement occurs when the debt negotiator (attorney) reaches an agreement with your bank or with the legal debt holder, to satisfy the principal debt balance for a fraction less than owed. In most cases, only unsecured debts such as credit card debt, personal loans, and accounts in collections would qualify.

The debt settlement process can save a client thousands or tens of thousands of dollars depending on the negotiator. Consumer law attorneys that specialize in debt negotiations are simply the most qualified and efficient.

The attorney's debt settlement services may be best suited for debtors that just want to get the their debts "paid off" for the lowest settlement amounts possible, and are not concerned about the short term negative impact that the debt settlement procedure has on their credit report.

Most clients that enroll into the debt settlement program do so because they are having a *legitimate financial hardship, want professional representation from a licensed attorney, and do not want to file for bankruptcy.

When handled properly, most creditors will agree to accept less than the full balance to settle the outstanding credit card debt.

*A legitimate financial hardship is considered when you only have enough money to cover necessary monthly living expenses and limited funds left over at the end of the month to pay credit card bills.

Necessary living expenses typically include mortgage payments, rent, grocery bills, home utility services, medical coverage, car loans, as well as child support and tax debts.