Unsecured Debts – they can have ugly costs attached to them. For that reason, if you are currently facing a large interest bill each month, debt negotiation can be an excellent way to reduce costs and turn unsecured in to secured. For those of you who don’t know, unsecured debts are things such as: Credit Card Debts. Medical Bills. Personal Loans. Student Loans. Each of these things cannot really be “secured” against any personal property that you own because of the nature of the loan in the first instance. However, if you want to get rid of these types of debts, debt negotiation is the best way of going about it – and it could have major benefits for you. In this article, we are going to look at a few examples where people have been able to save a lot of money through debt negotiation. Hopefully this will provide you with an idea of how you will be able to perform with your own finances, and how you will be able to cut costs, in the future. There are many debt negotiation companies available, though CuraDebt and Care One Credit are the names we would suggest you should bank upon for the best possible debt solutions and to avoid any further rip off. Who Should Use Debt Negotiation? The ideal candidate for debt negotiation would be someone who was paying sky high interest for debts which are unsecured. The types of debts mentioned above are all unsecured, so if you have a number of credit cards with balances owing, this could be a great idea for you. More often than not, if you have unsecured debt already, you will probably have good credit. It should be noted that people with bad credit don’t have much of a chance when it comes to negotiation, so if you do have bad debt, we recommend you take steps to fix it first. After doing that, you will then be able to use the services of a debt negotiation company to help reduce your costs. In saying this however, another person who could benefit from debt negotiation is someone who sees that their financial situation is beginning to deteriorate, or might worsen in the future. At this point, it would be a great idea to get in touch with an adviser from either CuraDebt or Care One Credit to ask about such services and how they might be able to help. The Debt Negotiation Process So what actually is debt negotiation? Basically, it is something which is done to get you a better deal on your debt. For example – let’s say that you are currently paying 22% interest per year on your credit card balance. This is considered to be a very high rate for a debt. With personal loan rates around 9%, you might be able to use a debt negotiation service to find a better deal on your credit card loan. Even a reduction to 12% saves you 10% interest on the loan every year! Of course, you could do this yourself, but there are actually even more advantages to doing it through a debt negotiation company. These companies specialise in the trade, and are able to convince banks more easily than you as an individual. Additionally, these companies negotiate in bulk, and are able to score better deals if they have multiple clients. Alternatives to Debt Negotiation If you are unable to negotiate your debt down (some people simply can’t) – another option is to seek a debt consolidation loan. This is a different way of reducing debt costs and admin, and can be great for those with average credit reports. Another option, which is quite unattractive, is bankruptcy. Before considering this though, you should definitely contact a debt planner to see if your situation is salvageable. Debt counselling may also be an interesting idea for those who know that they are bad at managing money.