If you have piled up huge amount of debt, then you should take necessary steps to curb it as soon as possible. If you don’t reduce your debt load, then be sure that your credit score will fall. And if you have poor credit score, then lenders will reject your loan applications. But the question is how you will reduce your debt load. Well, you can reduce your debt load with the help of debt settlement program. A debt settlement program can lower your payoff amount by 40% to 60%. There are lots of companies that offer debt settlement program for a fee.
When you hire a debt settlement company, the representatives of the company open a trust account for you. In that trust account you are supposed to deposit money till you have accumulated 50% of the total debt amount. Once you have done that, the representatives of the settlement company will negotiate a lump sum with the creditors. You have sign a contract and pay off the amount.