Many people who owe a lot of money are now considering debt negotiation as an alternative to bankruptcy. This is a very effective strategy especially for smaller lenders who might not qualify under the new bankruptcy laws but still need a way to remove an oppressive debt load. It is called by a number of names including debt settlement, debt arbitration and a debt management plan, but whatever you call it, it is growing in popularity as a means to get out debt.

The process is simple to use and allows both creditors and borrowers to win because it results in a mutually acceptable settlement agreement. For debtors it can avoid the messy details and the stigma that follows a personal bankruptcy. For up to ten years later this information is stored on your personal credit file and most traditional lenders will not even consider you for a loan or a credit card. More importantly debt negotiation can cut your existing debt in half and end the steady stream of telephone calls and letters from your creditors.

One of the other reasons that makes this debt reduction option preferable is that it takes much less time for this process to unfold than even debt counseling. A debt counseling program usually takes from five to seven years before your debt is retired and your credit file is restored. Debt negotiation can be done within two or three years and the restoration of your credit rating can begin as soon as you start paying off your unsecured debt.

This type of credit negotiation service is limited to people who qualify by owing a certain amount of money and may not be appropriate for all debt problems. Also this type of negotiation can only be applied to unsecured debts like credit cards and loans that were made without having to provide any collateral. That would exclude most mortgage and car loans since the creditor could seize the property or assets in order to pay off the loan and does not require the negotiation of a settlement. For people who don’t want to go through the bankruptcy route and meet all the conditions for credit negotiation then this new option is certainly one to consider.

Do you need some FREE help with your debts? You can contact one of our Christian counselors using the form on the right for some free credit counseling help and advice. They will help you to lower your payments today.