Negotiating your own settlement can be a good approach, as most debt settlement companies take high up-front fees. In general you have to be pretty late or in collections for banks to be willing to negotiate with you, as they need to believe that you’re at risk of declaring bankruptcy and they will get more out of settling with you than trying to collect normally and risking the bankruptcy. This will also have a significant negative impact on your credit, so it’s advisable only if you feel you’re headed to bankruptcy.