Debt Settlement is an approach to reduce the balance owed and paying it in full. Consumers can personally hire a lawyer or check local sites online to help come to an agreement with the debt company. Sometimes the creditor company may even file a suit against the consumer through a court procedure. In some cases, the debt company will sell your account to a collection agency for pennies on the dollar. If the consumer decides to make the monthly minimum payment the creditors will not change the balance and will proceed to take the small amounts. When a settlement is successful the creditors agree to take a certain percentage of the overdue balance. When the debt is settled, the consumer may request to have the debt taken off their credit report to keep away any negative remarks. In order to work with a debt company, you will need to have a lump sum of money to handle the debt as fast as possible. Usually, an unsecured debt like a home or a vehicle can be settled. The secured debts like student’s loans and medical bills are more difficult.