Although they are usually under no legal obligation to do so, many creditors will agree to negotiate settlements with consumers who are facing long-term financial hardship and have little hope of paying back the balance they owe in full. From a financial perspective, it is usually in the creditors' best interest to reduce their collection costs and collecting a percentage of the total amount owed. While it is possible for consumers to negotiate debt settlements on their own, some consumers chose to contract the services of debt negotiation companies. These third-party firms step in and take on the responsibility of negotiating with creditors on behalf of the consumer. However, there are many criticisms of the current business practices that are common in the debt negotiation industry. If you decide to seek out the services of a debt negotiation company, take the proper precautions and perform the due diligence research that is necessary to ensure that your preferred provider is reputable.