Are you interested in reducing your consumer debt by pursuing a personal debt settlement? In most cases, a settlement occurs when a creditor agrees to accept a smaller lump sum as immediate payment for a past-due account, rather than continuing to pursue collections via traditional methods. In exchange, the creditor will report the account as having a zero balance, although the consumer's credit report will bear the notation "Paid by Settlement" or a similar term. Today, there are thousands of debt settlement companies that are willing to help consumers negotiate debt settlements with their creditors. However, the lasting impact of these services has been called into questions by a number of leading financial experts. In many cases, credit card companies are more willing to negotiate when they are dealing directly with the account holder; indeed, some companies have explicitly phased out the practice of working with third-party negotiators. If you are facing a difficult financial situation, it may be more beneficial and far less costly to initiate the debt settlement process on your own behalf.