In the aftermath of the recent economic crisis that rocked America's financial services industry to its core, the process of consumer debt negotiation is not as simple as it used to be. Due to widespread financial hardship, creditors across the United States are being hit with record levels of late payments and defaults. Because it is well known that many American consumers are facing financial hardship, some creditors have adopted a more flexible approach to the process of consumer debt negotiation, while some others have reacted in the opposite manner, imposing harsher penalties for defaults and limited the amount of leeway offered for settlement proposals. Still, if you are in a situation that has made it difficult for you to meet your monthly payment obligations, it is always advantageous to contact your creditors and discuss your circumstances in a forthright manner. If you can provide proof of reduced financial means that are likely to improve in the near future, your lender might be open to the idea of a settlement.