If you are seeking to settle some of your credit accounts by offering a smaller lump-sum payment in exchange for your balance being listed as paid in full, it is important to develop a strategy before undertaking the process. When it comes to debt reduction, negotiation skills are a vital part of determining your overall success. Before you begin to contact your creditors, undertake a process of self-evaluation in order to better understand exactly where you stand financially. Being able to present evidence and hard facts will be enormously helpful when it is time to prove to your creditors that you will be unable to pay the full amount due on your balances. Devise a short summary of your financial situation that you can use in emails, letters, and phone conversations with your creditors. It may also be beneficial to learn more about the basics of negotiation techniques before you contact your creditors to discuss debt settlement and debt reduction options.