With more people struggling to pay their debts, there is an increase in the number of people who are looking to “settle” their debts with their creditors. A debt settlement is a process in which an individual, or a company acting on behalf of the individual, contacts their creditors to request a settlement amount that is less than the total balance owed. It is not unheard of for a successful debt settlement negotiation to result in the individual paying less than half of the total amount owed to fully repay their obligation to the creditor. [ READ MORE ] Obtaining credit is getting increasingly difficult for Americans, particularly those with less than perfect credit histories and average or low credit scores. Also increasing are the number of people who fall into the “average” or “low” credit score category, as people everywhere seem to be struggling more financially. [ READ MORE ] If you're seeking an alternative to bankruptcy due to excessive debt that you can't pay, you may be considering debt settlement. Settling your debt is when you negotiate with your creditors to lower the amount you owe. [ READ MORE ] Next to bankruptcy, having an account in collections is the worst entry you can have on your credit report. It will lower your score, and make it difficult- if not impossible- to obtain new credit. Creditors realize that if you have an account in collections that it went unpaid for a long period of time, and it makes them fear that if they lent you money they would not receive payments on time, either. [ READ MORE ]