Whether debt settlement is an appropriate solution depends on the circumstances.
For example, unsecured debts (which are debts not protected by a lien against a property or assets) are usually easier to negotiate than secured loans. Some examples of unsecured loans are cell phone bills, credit card bills, medical bills, collection accounts and private student loan. Secured debts, on the other hand, are protected by a lien against a property or assets, and can be more difficult to negotiate because the creditor has the option to take possession of the secured property or assets in the event the debt is not paid in full.