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distress, this is a tough thing to handle.

Summary
It's pretty clear that debt negotiation can be a good option for those whose debt burden is too heavy to bear or for those who are nearing bankruptcy.

Remember that arbitration means that you and your lender will each have a representative and they will usually negotiate and decide upon a settlement between them. Be sure to understand the process, as well as the settlement resolved upon before you accept any offer.

A final note on debt negotiation: If you go into the process believing that your debt will be forgiven, think again. At best your loan terms will be adjusted so that you can pay the lender at least a portion of the money you promised to pay back.

If debt negotiation looks like too chancy of a prospect, or like it might be more than you feel confident in being able to accomplish, fear not. There is a better way to reduce your debt at an accelerated pace.

Part 2: Accelerate Your Debt Payoff
Option two for debt reduction involves the application of a simple, yet tried and true, principle with many names. It has been called a roll-down, a roll-up, a snowball and several other strategies.

This principle essentially requires that you change some of your current spending habits without spending any more on debt than you do at this time.

Here's a snapshot of an average debt load:

Car 1: Balance: 13,560 Monthly Payment: 340

Car 2: Balance: 9400 Monthly Payment: 200

Discover Card: Bal: 3100 Monthly Payment: 80

Mastercard: Bal: 850 Monthly Payment: 50

Student Loan: Bal: 23,900 Monthly Payment: 150

Mortgage 1: Bal: 189,000 Monthly Payment: 1200

Mortgage 2: Bal: 49,000 Monthly Payment: 800

If you simply follow your lenders' plan for your debt pay-off, you will simply be making minimum payments, accruing interest steadily, and will basically be under great financial stress.

So let's begin with the current monthly payment toward debt: $2820. Remember that lenders want to keep your balances up for as long as possible, because that's how they keep earning money.

You want to get rid of balances in a hurry.

Your best bet is to restructure your payments so you get rid of balances quicker, and you can do this without paying anything extra toward debt.

What would happen if you paid $50/month toward your student loan for six months or so, and took that extra $100 and applied it toward your Mastercard?

Your Mastercard would be paid off in six months. Then you commit to not carrying any balances on that card ever again. Dave Ramsey would tell

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