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Submitted by: Gerri

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Thanks for your question. I should put my comments in context. While yes, I have seen settlements as low as 10 cent on the dollar it doesn't mean that anyone should expect settlements that low. The amount you can settle a debt for depends on a number of things - the creditors you owe (some will negotiate more aggressively than others), your financial situation, how far you have fallen behind etc. <i>No one can guarantee that you can settle your debts for 10% of what you owe. Please do not pay any debt negotiation company that says you can. </i> Most consumers who go the settlement route end up paying around 50-60% of the amount of debt they owed when they started negotiation. If all you can afford to pay is about 10% of what you owe, then your first step should be to set up a free consultation with a bankruptcy attorney to find out whether you can file Chapter 7 bankruptcy. If you can wipe out most or all of your debts in Chapter 7, then I would really encourage you to consider that route. But even if you really don't want to file, it is essential that you talk with a bankruptcy attorney before you decide to go down the debt negotiation route. That's because it is always possible that you could be sued for your debts, and you need to know what your options will be if that happens. We talk about debt settlement - pros and cons - in great deal in Reduce Debt, Reduce Stress. I think you will find it helpful.

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