The terms "debt settlement", "debt negotiation" and "debt arbitration" all mean the same thing: that you reach an agreement with a creditor to accept less than full payment on a debt. Typically, a creditor will only accept a lump sum payment as a settlement. The discount they give you is in exchange for a lump sum of money as opposed to having to collect the debt from you over time. You are then released from further obligation on that debt. The primary feature of debt settlement is that you get out of debt at a discount.

Debt settlement is not the same thing as "debt consolidation." Debt consolidation occurs when you lump one or more of your debts together (consolidate them) and make one payment on the debt instead of multiple payments. Bank consolidation loans are rare without excellent credit or some collateral such as your home.

More common, is what is referred to as "consumer credit counseling", where you make one payment to the credit counseling company, and they divide it up among your creditors in some way. With debt consolidation, you pay full value on the debt, plus interest (which may be reduced).

Stephen T. Craig is a practicing bankruptcy and debt settlement lawyer. He has counseled thousands of individuals and businesses on their options regarding debt since he started his debt settlement and bankruptcy law practice in 1994.

He runs the debt settlement firm, Trident Debt Solutions, Inc. Trident Debt Solutions is the expert financial consulting firm, that helps clients quickly settle their debt for 50-65 cents on the dollar.ADVANTAGES OF HAVING A DEBT SETTLEMENT LAWYER

Having a debt settlement lawyer on your side, gives you real advantages. As a practicing bankruptcy lawyer, Mr. Craig has filed over 2000 bankruptcies. So creditors are used to getting absolutely zero when they deal with his clients. For you, this means that you have excellent negotiating leverage.

Secondly, when dealing with a debt settlement lawyer, you have recourse that you may not have with your typical debt settlement firm. When you are going to give a firm thousands of dollars to settle with, it is imperative that your settlement funds are safe. The debt settlement industry is unregulated. This means that anyone can call themselves a debt settlement expert, even if they have no education, experience or ethics. Your money is safe with a lawyer. I welcome you to call the Colorado Bar Association to check my flawless record, at 303-860-1112.

Another advantage of working with a debt settlement lawyer, is that a lawyer can stop the creditor harassment immediately in most cases. Federal law (Fair Debt Collection Practices Act) dictates that if you have a lawyer representing you, and you provide that information to your creditors, the creditors must contact the lawyer, and not you. This is not the case with your average credit counseling or debt settlement firm.