Debt settlement programs can be your cheapest option for debts. It is a legal way of getting out of debt by paying less. Within the legal frame you can pay part of the debts and clear you liabilities.
In the present period in which we are still suffering due to the recession we have to be extra careful when we are dealing with money. We have to be cautious when we obtain loans and we should spend within our economical capacity. However it is easy to say than doing it and we are trying hard to get out of debts.
To settle your multiple debts it is not wise to use your life time savings. There is no guarantee that you will suddenly be able to earn money to pay loans. In such an occasion these programs can be used.
When a person seeks help from a settlement company, it would negotiate with the banks on behalf of the customer for a reduction. Then usually the customers get a discount of 50-70 percent. If the deadlines for the payments are near the company would complete the payment. Then the customer can pay within a longer period to the company.
These methods have their legitimacy increased by the newly introduced laws of the Federal Trade commission. It is a secure way of clearing debts. According to the new laws companies cannot charge money before settling at least a percentage of the amount. Therefore if a customer is careful enough to choose a company registered under The Association of Settlement Companies it is almost a risk-free way for debt relief.