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What is Settlement of Debt and How Does It Work?

What is debt settlement (also often called debt negotiation and debt reduction)? It is the legal process of getting your creditors to accept less money than you owe them for your unsecured debts most commonly credit cards, medical bills, large utility bills, and unsecured personal loans. Settlement of debt is very common and has become more so as the amount of consumer debt has increased over the past few years, particularly with credit cards.

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