Guest Post by one of our Personal Finance bloggers. Let us know if you would like to read more of these type of articles. Another word for credit settlement or debt negotiation is debt settlement, which is a way to reduce the debt where the creditor and debtor both agrees on reducing the balance which is now regarded as payment in full. Everything is negotiable, is the greatest truth in a business. Getting a discount while the price seems to be set in stone, can be very easy if you know how to ask for it and whom to. Read more to find out how: The Basics of Debt Settlement: The process, which involves the offering of a large single time payment on an existing balance in return for the forgiveness of the remaining debt, is called debt settlement. As an example, suppose someone has a balance of $6000 on a credit card can approach for a onetime payment of $10,000 from the credit card company. As a return, for this single time payment, the credit card company may agree to forgive the remaining $4000. How to Attempt a Debt Settlement: If you decide that going for a settlement is the right thing for you, then here are the steps to follow: Choose Your Way: Now firstly you have to choose whether it will be you or your hired professional for the settlement. However, keep one thing in mind that the credit card company would be looking forward to close the deal with the actual owner of the account.Financial Position: This is an important step where you need to make sure that the credit card company realizes you to be in a rock and hard state. In this situation, the company will accept your offer as the only option to go for. In other words, you have to cut down the expenses of your credit card and then show them that it was not used much. This will be a vote of sympathy for your end.Payment: Show to the company that you have been trying for a debt settlement from months before. This can be shown be the on-time payments from you. Also, tell them that you do not have the sufficient amount and thus you would like to settle the amount right away.Bargain: As an impression of thumb, start offering the lender an amount of 30% of the balance. However, if the settlement is not done within 50%, it is better to hit it with a different lender.Receipt: At the end of the settlement, do not forget to collect your receipt, as it would help you in future. Also, a receipt may turn up lucky for you to have a new credit card. The Drawbacks of Debt Settlement Talking about the advantages of the settlement, there are many disadvantages even for it. The debt settlement lowers your credit score more the credit score turns up. Because you are looking forward for a debt settlement, you should have an eye on your personal finances and put a hold on it. The real reason behind this is that your personal finances will be examined.