The people you owe want your money. Chances are, if you are in debt you already know this. However, what many consumers do not know is that there is a fast, effective way to reduce and sometimes eliminate unsecured debt without the rigors or consequences of filing bankruptcy.

With unsecured debt, where no collateral was used to secure the loan (such as with a credit card, medical bill, or personal loan), creditors generally have very little recourse against a delinquent debtor. While it is true that they could sue and win a judgment in court, which could result in wage garnishment or a sheriff’s sale, the chances are small. It takes a company or individual considerable time and expense to take that kind of action.

Typically, a simple call to the creditor stating that you are willing to repay the debt is all it takes. Once you have established your intent to pay, debt settlement is simple. While the creditor generally will not mention their willingness to settle, if you state you are unable to pay the full amount they will understand. Offer a lower, but still reasonable, figure and move forward from there. As with any negotiation, it is important not to start with the figure you intend to pay, but to start slightly lower. The representative of the company is likely required to haggle to a slightly higher price than your starting bid.

Through this simple method, you will be able to lower and potentially eliminate your debt.