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Types of debts eligible for debt settlement

Normally, only unsecured debts, like credit card and medical debts, can be negotiated for settlement. Secured debts, like home and car loans, cannot be negotiated because the creditor usually can repossess the item purchased with the credit issued to the borrower. If the debtor decides to enroll in a debt settlement program serviced by a professional debt settlement company, the amount of debt enrolled must usually total at least between $7,500 and $10,000, depending on the company. Some companies accept smaller debt loads.
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