Free Debt Reduction Plan:

Negotiate Your Own Settlement

Negotiating your own settlement may seem like a daunting task but it is tactic that in some cases can work effectively.  The best way to negotiate a settlement is to prepare a convincing and professional letter for your creditors and explain that if they don’t settle you are going to be forced to declare bankruptcy.  Sometimes, creditors will realize that some money is better than no money and agree to a lesser amount that you actually owe.  This tactic is usually only effective for unsecured debt. 

Benefits: No bankruptcy on your credit report and no required legal fees.  Drawbacks:  You have to do everything and it is not always possible to convince creditors to lower the debt you owe.