Debt Settlement In today’s world it’s been unavoidable one to live a credit culture life. When we are using our credit card every time then we are at debt obviously. There are certain ways to settle this debt. Debt settlement is a process that helps us to get rid of our outstanding debts much lesser than that the creditors own. In this process we have to stop paying the monthly installments to the creditors rather we can start saving the money. When we have saved 50% of our total settlement amount we can speak to the creditors for negotiation. The process is known as debt negotiation or debt settlement or can be called as bankruptcy. It’s very easy for us to have the debt account but it is quite difficult for us to control the debt. There are certain ways to get out of the debt either by paying properly the monthly due or to go by the old concept of debt itself which is the legal, logical and ethical way to get out of the debt. In order to settle the amount we may contact the creditors directly or we can go through the settlement company whom will help us to overcome the problem. Creditors will usually agree for the debt settlement as because they don’t want to spend much time to collect the money and it is assured that you are trying to pay them. It also help them not to sell our account to collection agencies as a much lesser price and the reduced payment by us is always more than the creditors avail from the collection agencies. Debt consolidation is another way of paying the debt by taking out loan in order to pay the other. This is often done by many others in order to have a lower interest rate and also help to have a fixed rate of interest for the loan. It is rather defined as the number of unsecured loan to another unsecured loan but it seems secured like that of the involving the secured loan against the asset which serves as a collateral, most commonly a house. When the debtor is at risk of bankruptcy, the chance of having a loan at a discount by the debt consolidator may happen. But there is a certain risk in doing so that the consolidation may affect the confident of the debt to discharge the debts in bankruptcy. It is feasible and advisable for those who pay for credit card debt as the interest rate for it is higher when compared to the unsecured loan from a bank. Theoretically it is an advantage and it offers a consumer who has high interest debt balances and it makes the company to take an advantage in having the debt consolidation loan. The most important concern is in both the cases we have to be careful in dealing so or else we will be in trouble.