Debt settlement is one of the best ways to reduce your debt amount or eliminate it and hence avoid bankruptcy. Medical reasons or losing job are a few reasons which can make it difficult for people to pay even the minimum amount that is due on their accounts. Under such conditions an obvious solution that comes to one’s mind is bankruptcy. However, consumers must avoid filing for bankruptcy as there are other options which can help you out of your debt without spoiling your credit report for the next 10 years.Settling one’s debt is a simple procedure which can be done by the debtor himself but hiring a professional is a less stressful and more effective way of going about settlement. The hired expert will review your debts to see which one of these can be settled. After analysing the situation he will also provide you assistance in negotiating a settlement amount.Credit card debts are one of the most common unsecured debts which can be settled. Any debtor with at least ten thousand dollars in unsecured debt can get his debts settled. Once the experts have reviewed your debts, they get in touch with your creditors to negotiate a settlement amount. Usually a good negotiation can get a reduction of 40% to 60% of the original debt balance. However, in some cases debtors have got debt reduction of as high as 80% of the original amount.The debtor needs to pay the remaining amount in a single down payment or it can be paid through monthly instalments as per the term of negotiation. One must understand that the debt settlement does have some negative impact on the credit report. But it is less than that caused by Bankruptcy.