Almost every industry collapsed last year when the economy took a hit because of events spiraling out of control. One sector in particular that took a beating was the financial service segment. Institutions that lent money no longer were in a position to lend further. They had suffered the worst as people used credit cards like crazy. This was because of the fact that the credit card users had no alternate sources of income to back on.
Everyone took a step backward and refused to pay the lending institutions, which was a major blow to the industry as whole. The situation now looks brighter, thanks to the improving economy and preventive measures taken by the government and industry experts in unison. To the consumer it is a one to one relationship with the creditor, but it is one too many for the creditor. So the cumulative effect of the losses suffered by the creditor is unimaginable.
To revive the system and the industry, the financial institutions have come out with a plan to encourage customers who have unsecured debts to start paying back. However this is not a pay back of the original debts that were due, but it is a discounted version where you will be paying less than the actual dues. This discount varies from person to person and it is totally based on the decision of the creditor. There is some more good news if you are smart enough to negotiate with the lenders.
Two debtors who have the same dollar amount dues can get different discounts. The reason for this is a difference in the preparations made before approaching the creditor and the degree to which the negotiation worked in your favor. Going with a debt settlement program is a superlative option when compared to doing this all on your own. They have the required skills to negotiate the best deal for you. A word of caution which is worth mentioning is to be aware of deceptive offers from many such companies who make false claims. So, do your home work before approaching one of these firms to solve your debt miseries.