Credit Card & Debt Decrease Settlements Depending on your situation, your credit analyst may be able to negotiate a debt lessening settlement with your creditors. Under a debt decrease settlement, a creditor agrees to reduce the amount you are in debt in return for a assurance that you will pay off the reduced amount at specified terms. This process also is referred to as third-party debt negotiation. The criteria for qualifying for a debt decrease settlement are the same as for a DMP. The settlement can take in credit card and other unsecured debt, but not mortgages, auto loans and other secured debt such as student loans, or legal obligations such as alimony, child support and fines. Under a debt reduction settlement, the debt is normally set on within one to three years, with creditors settling for between 20 and 80 percent of the original debt. After you pay the agency fees and settle the debt, you will see a usual of 40 percent in savings. But watch out for agencies that assure to reduce your debt by 50 to 70 percent. Many of these agencies are not reputable and improbable to bring. Now, the Federal Trade Commission is investigating a number of dubious counseling agencies that make such fake promises to customers.