A debt settlement is reached when a debtor is unable to fully meet his/her debt obligations due to financial hardships and attempts by the creditor to collect on the debt have failed. The creditor agrees to cancel part of the debt and accept the remaining sum as full repayment. Debt settlement is also called debt negotiation. In other words, a debt settlement is the agreement while debt negotiation is the process through which both parties reach that agreement.

Consumers who use debt settlement are those who are experiencing legitimate financial hardships, cannot afford to repay their debts through debt management plans offered by consumer credit counseling agencies and who also want to avoid filing bankruptcy. For this reason, debt settlement falls between consumer credit counseling and bankruptcy.

Foundation Debt Relief has one of the strongest team of professional debt consultants in the industry. Our team provides help in setting up payment plans that work for you, and then negotiating settlements on your behalf. Our Debt settlement programs are able to lower your monthly payments to approximately half of the typical minimum monthly credit card payments, so you can become debt free in a short period of time.