What is the difference between debt negotiation and debt settlement?

Debt negotiation and debt settlement are two different processes that are used to help a debtor reduce their debt. Debt negotiation is a process that involves the debtor negotiating directly with their creditors to reduce the total amount of the debt and establish a payment plan that is manageable. The creditor may agree to a debt reduction or to lower the interest rate that was previously charged. Debt settlement, on the other hand, is a process where a debt settlement company will negotiate directly with the creditors on behalf of the debtor to reduce the amount owed on the debt. This process is often much faster than debt negotiation, and can lead to larger savings. However, the debt settlement company will often charge a fee based on a percentage of the debt that is settled. In Pennsylvania, debt settlement is governed by the Fair Debt Collection Practices Act and the Pennsylvania Debt Settlement Law. These laws outline the disclosure requirements and other legal restrictions related to debt settlement. It is important to understand the legal implications of the debt settlement process before engaging in this type of debt resolution.

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Can I negotiate a debt settlement without a debt settlement company?
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What is the difference between debt negotiation and debt settlement?

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