Financial hardships caused by the difficult economy have caused millions of consumers to accumulate billions of dollars in credit card debt which they no longer can repay.  If you’re one of these people and find yourself asking “What do I do now?”.

Debt Negotiation may be your answer.  When repaying the debt monthly in the amounts required by the creditor is just too much and bankruptcy is out of reach, too drastic or absolutely the last resort, negotiating a settlement to resolve each outstanding debt is the alternative which provides a welcome relief for many consumers.  Each month funds are set aside and accumulated so that offers to resolve the outstanding balance – often for less than the full amount owed – can be made on your behalf.

If you are like many, much of the outstanding balance you owe is interest and fees.  As such, your creditors are often willing to accept substantially less than what they are owed to resolve the debt.  Your monthly payment is your monthly commitment to resolving your debt issue and as such is designed to comfortably fit your budget, but with the flexibility to skip a payment without additional consequence in the event of an emergency or unforeseen expense.

Debt Settlement is usually a good choice for those consumers whose credit card payments are over 90 days in arrears and who are experiencing financial hardship.  Even though new debt settlement laws were enacted in late September 2010 and the debt settlement industry has undergone a great deal of change, it still remains a practical choice.  Instead of charging fees upfront for settlements, debt settlement companies have had to change their business model and adapt to the new climate.  The new laws do permit fees to be paid by the consumer, but only after the creditor has been paid.  While some of these companies and individuals claim they offer free debt settlement advice or trial offers, the question the consumer must ask is:  What is truly free?  Sadly, the vast majority of these companies and individuals use your financial predicament to feather their own nests by selling you a book, CD or other propaganda.  They do not provide actual debt negotiation services.

Fortunately, there are online tools for debt settlement that are, in fact, free.  SettleiTsoft® offers an excellent Web Solution tool, which may be accessed via www.settleitsoft.com.  This intuitive, user-friendly software platform provides powerful budget management tools and creates a virtual environment for debtors and creditors to electronically negotiate and resolve the consumer’s debt crisis.  Most importantly, the settlement process is totally in the consumer’s control and can be customized to suit an individual’s personal financial situation.

The robust software does virtually all the work, including debt negotiation with your creditors, by generating settlement proposals to the creditors, which are then monitored and updated by the consumer, as well as tracking all account activity.  Basically the consumer enters the required personal and creditor account data, uses the Budget-iT tool to determine monthly disposable income that may be put aside in the consumer’s settlement savings account, and then chooses a settlement plan accordingly.  This system is completely transparent, allowing both the debtor and creditor 24/7 access to view all pertinent activity.

Bottom Line:  Debt Negotiation, particularly by using the free debt negotiation software SettleiTsoft®, avoids bankruptcy, dramatically reduces the debt amount owed (usually by 50% to 60%), may eliminate the need for additional loans at variable interest rates and may eliminate fees by attorneys, debt settlement companies, loan consolidators, and credit counseling services, as well as allowing you to decide which credit card accounts to include in your settlement plan (thereby permitting you to hold onto credit cards that are in good standing).

Remember, the worst debt relief approach is to do nothing.  So, if you are one of the millions of consumers who have unsecured debt that is beyond your control, then you should seriously consider debt negotiation as your action plan to help restore your financial peace of mind.

Please Note:  This information is for educational purposes only.  For specific advice, please contact a qualified professional.