There's a growing interest in how to achieve credit card debt relief using Debt Settlement as an alternative to Credit Counseling and Debt Consolidation Loans to help with debt reduction, to consolidate debt, and avoid Bankruptcy.

As a Certified Debt Specialist I've talked with thousands of people over the years who are burdened by massive credit card debt, medical bills, or other unsecured debts. Lately, one of the most frequently asked questions has been:

"What Is Debt Settlement and How Does It Work?"

Debt Settlement (also referred to as debt negotiation) means that your debt is negotiated down to a reduced amount, and your account is settled in full. Historically, settlement amounts within 40 to 60 percent of your outstanding balance are realistic. For example, if your debt is settled for 40%, that means your $20,000 in total unsecured debt is settled for $8,000.

Every day I speak with good people all across the U.S. who are financially overwhelmed. Many are unable to make the minimum payments on credit cards or other unsecured debt. Maybe they can't borrow against their home since property values have plummeted. Maybe they can't make the payment suggested by a Credit Counseling agency. They may simply want to avoid bankruptcy.

Debt Settlement is one of the most effective debt relief options available to consumers. It's a great choice if you have more debt than you can pay off, and you're experiencing a financial hardship that has you falling behind (or just about to fall behind) on your monthly payments.

Why would your credit card company, commonly referred to as a creditor, choose to settle debts rather than continuing to charge you interest and late fees month after month? Well, it's really a matter of dollars and good sense. Creditors know that if you get into a bad financial situation and can't make your monthly payments, you may decide to declare bankruptcy. In this case they may get nothing! Therefore, given your hardship, rather than risk getting nothing, the creditor is usually very willing to settle for a lower amount.

Once you enroll in a Debt Settlement program, the first priority is to effectively minimize creditor's phone calls. Your total unsecured debt amount is reduced up to 60% while providing just one low monthly program payment. Your monthly payment amount is often as low as half your current combined monthly payments to the same creditors.

Many people are struggling to pay off credit card debt, medical bills, or other unsecured debt, and they're wondering if the Debt Settlement advertisements on TV, radio, or the Internet are for real. There are so many questions and an abundance of mis-information about debt relief. This led me to create a video series to address the most frequently asked questions I hear from my clients, such as:

Can I really get out of debt for a fraction of the cost and pennies on the dollar?

Can Debt Settlement help me get out of debt quickly, legally and safely?

What are the effects on my credit score, or my income taxes?

How do secured/unsecured debts differ, and which can be settled?

Do I qualify for enrollment in a Debt Settlement program?

These are just a few of the most frequently asked questions. And yes, Debt Settlement really can allow you to pay back less than you owe.

I have many clients who have successfully had their unsecured debts negotiated and settled in full, and in the process saved $5,000 to $25,000 to $45,000 or more. Remember, the goal of the credit card companies is to keep you in debt, whereas the goal of a reputable Debt Settlement company is to help you quickly & legally resolve your financial hardship and get you out of debt!

If you're struggling with a huge amount of unsecured debt, it's important to become informed about your available options. With this knowledge you'll be in a better position to choose the debt relief option that's right for you.