During the debt negotiation process, many types of debt can be settled for less than a consumer owes. Credit card debt, bounced checks, personal loan debt, medical bills, and many other unsecured debts can be negotiated and reduced. Unfortunately, there are certain debts that cannot be settled by a credit card debt consolidation company.

Secured debt is an example of a type of debt that cannot be settled through negotiation. A secured debt is one that is secured by collateral. Home and auto loans are both examples of a secured debt. If a person needs help with either of these types of debt, they will need to speak with another type of financial professional to discuss their options.

Most student loans are another type of debt that cannot be settled. Under certain circumstances these debts may be forgiven, consolidated, or refinanced, but are not able to be negotiated. However, there is one exception. Some private student loans may be able to be settled, as long as they are not subsidized by a non-profit organization or the government. Unsubsidized private student loans are a type of unsecured debt, which may make them eligible for negotiation.

Tax debt is another type of debt that can usually not be settled. To negotiate this type of debt, specific documentation must be filed with the IRS or the taxing authority in the state a person resides. The process for reducing tax debt is very complicated and must usually be handled by a tax professional. Unless a settlement agency employs such a professional, they are usually not equipped to handle this
type of debt.

While most student loans, secured loans, and tax debt cannot be settle, many other types of debt can be. Consumers that choose to work with a settlement agency are usually able to reduce much of their debt, which makes the rest of their bills significantly easier to handle.