Friday, 25 March 2011

Debt Consolidation Loan : Perfect Way To Get Out Of Debt

Everyone wants to live happy in their life without any kind of trouble. If you want to live in happy then you should maintain your finance structure in very well manner. People use many finance source to maintain their budget. For example, many people use credit cards to purchase their needs, take some kind of loan to fulfill their dreams. As we know, you can buy four wheelers, two wheelers etc with the help of loan. You can also take home loan to build your home or buy a flat.
In this way people manage their budget plan to fulfill their needs. But if, people are unable to pay their debt amount then it become a big burden in their life. This can be a major reason to take their happiness. 

The reason of debt is very simple. For example, If you are unable to control your credit card use, if you have taken such a huge loan without any proper plan to return the loan amount. These are the main reason due to which people enlist their name in the list of debt.
There are many ways by which you can sort out the problem of debt and one of the way is Debt consolidation Loan. If, your debt is big and you are unable to pay the debt amount then you should go for the option of Debt Consolidation Loan.

You can consolidate your all debts into a single bank debt loan. You can get the Debt Consolidation Loans from bank because bank provide such loan. You should contact the banks debt consolidation loan. The main benefit of the debt consolidation loan is you have to pay lower interest rate on such a loan. After that you should contact with a good debt consolidation company who can give you the correct idea about the consolidation of your debt.

When you will consolidate your debt then you will realise that you are paying only one debt amount instead of several debt. This is the good way to solve your various debt problem.
Now, you can get the debt relief from your various debts. Debt Consolidation Loan which provide by banks is the best option to solve your various debts problem.

Saturday, 19 March 2011

A Point of Logic

James Mackintosh writes a generally perceptive column in the Financial Times called Short View. On March 11 he wrote:
The releveraging of America is under way. After a brief nod to the idea of cutting debt, US companies increased borrowing last year and reduced their equity. Easy money from the Federal Reserve was followed by ever-easier lending terms from investors: easier even before the credit crunch.

Perhaps the best indicator of this is the ease with which private equity houses are extracting money from lenders. Dividend recapitalisations, when a company borrows in order to pay its private equity owner, have soared ... In the first nine months last year, non-financial companies, listed and unlisted, paid out more to shareholders than they made in profits ... In other words, [the companies] took advantage of record-low interest rates to transfer money from lenders to bondholders to shareholders.
Michael Pettis is a finance professor at Peking University and a senior associate at the Carnegie Endowment. On March 15 he wrote in the same paper:
China’s breakneck economic growth was fuelled by vast transfers of household wealth, which subsidised the manufacturing and investment boom and paid for bad loans. The most important of these transfers is the very low interest rate set by the central bank, which takes at least 5-7 per cent of GDP every year from households to give to banks and borrowers.
Here is a question. Why is it – and how is it – that in China, the low interest rates – set by the central bank – result in “breakneck economic growth”, through the transfer of wealth from the households to banks? But in the U.S., the same low interest rates – set by the Fed – result in looting: companies borrowing money and paying up that borrowed money to the shareholders. They paid out more to shareholders than they made in profits – without, no doubt, uttering one word about “fiscal responsibility”, “moral obligation to reduce debt”, “the future of our children”, etc?

If you do not know the answer, you should. But I put the two stories next to each other to make a point about the identity and difference.

Nothing exists out of context. And until we know the context, we know nothing about the conditions in two countries by merely comparing the interest rates in them. (In deducing the difference from unity, Hegel says that in statement “A is A”, the first A is different from the second. That is because a relation implies at least two terms to be valid. If the two As were the same, there could be no relation. Hence his statement that “self relation is a negative relation” because it repels itself from itself. Rumi proves that in 5 words – and 500 years earlier.)

Keep that in mind next time some fool compares two countries on the basis of their GDP, or two markets on the basis of their performance. The subject is dear to me because it is the stuff that arbitrage is made of.

Friday, 18 March 2011


There are many benefits in building in an investment portfolio. You know that you will earn money. You can take the example of invest for retirement as well as there are several ways to invest as you can invest in bonds, stocks commodities, etc. You should not spend so much time in research and investment as investment funds can be a best option for you.

In the process of mutual fund, all the money brings together from many people and invest it in bonds, stocks or other assets. So simply a mutual fund is where many investors pools their money together and that the money is invested in many different investments such as bonds, stocks, commodities etc.

No load mutual fund and load mutual fund, these are two main types of mutual funds. You can invest in these fund as both charge a small fee. However, in case of load mutual fund you have to pay some extra fees. It is simple that no one can give you the guarantee that you will earn more money. You can take the step of risk because a loan fund will earn more money after fees.

You should not spend your time to research individual investment as you can get many investments than once for instant diversification. In case of investment, if you invested in 5 to 10 different populations then you must spend at least a couple of hours every week to researching their investments. You can expect to get about an average of what the stock market is to win without having to worry about making time consuming tasks. With such funds, you do not have to worry about what individual actions they are doing.

If you want to build a diversified portfolio then you need a considerable amount of amount to start. When you invest in a mutual fund, you can often start with as little as $1000.

You can invest in stocks or bonds through a 401K or IRA. If you will invest for retirement then you will get tax advantages for retirement. 401K is the option where you can invest your money tax free until retirement. 

Thursday, 17 March 2011

Language, too? Language, too

Lots of you commented on the Descent of Man. Let me note here that the every-man-for-himself mentality is the byproduct of commodity salesmanship and was around long before speculative capital. Remember Michale Milken's famous utterance: “Who can we make a profit off of, if not our friends?” Change the euphemism of “making profit off” to “living off” and you have the script for the Night of the Living Dead, where friends and neighbors come to eat you up. That “conduct” – whether of Milken or the living dead – is the logical next step in a society in which every man is for himself. Speculative capital merely exacerbates it.

And it is not only the conduct. The language, too, reflecting the degraded relations, becomes degraded.

Let us look at two news stories. One is from the Financial Times of Monday, March, 14. Under the heading ‘Beijing rejects any N Africa analogy’ the paper reported:
China’s premier has rejected any comparison between his country and the troubled autocracies in the Middle East and north Africa … Wen Jiabao, in his annual press conference on Monday, said … that any attempt to draw an analogy between events there and situation in China was “not correct”.
FT wants to make us believe that there are people in the West who compare China to Tunisia or Egypt. Maybe there are – no doubt the offspring of Paul Samuelson who wrote at length comparing the U.S. navy and an apple.

To this nonsense, the Chinese premier merely says “not correct”. No ridiculing, belittling, shouting, cursing, mocking, intimidating, attacking, accusing, or slandering. Simply “not correct”, which is quite strong. If you think that one plus one is 3, “not correct” is all you need to be told. It is necessary and sufficient feedback and no expression can top it.

Now think of the language of Glenn Beck or O’Reily. They are not politicians? How about Newt Gingrich? Or that all-around thug, Rahm Emanuel, now the lord mayor of Chicago? And don't limit yourself to the U.S. Think Sarkozy, Berlusconi, or Tony Blair; this last one put a different kind of violence into the language, but it was due to moral certitude, no doubt.

That these characters merely reflect their societies is clear from the second story, this one from yesterday’s New York Times, under the heading From Cee Lo Green to Pink, Speaking the Unspeakable:
It’s some kind of milestone: Three of the Top 10 hits on last week’s pop music chart have choruses that can’t be played uncensored on the radio and won’t have their original lyrics quoted in this family newspaper. All three use variations on a familiar, emphatic, percussive four-letter word.

Chalk it up to post-World War II realism, demographic changes, bravado, freedom, permissiveness, the Beats, the 1960s, hip-hop, the Internet, the decline of Western civilization or all of them at once. Cussing in public has become more the rule than the exception, sometimes even on formal occasions.
I have a different take on the subject. I discuss it at length in the upcoming Vol. 4. Let me give you a sneak peek. Consider it a soft sales pitch:
When the “conduct” of the salesmen changes in a fundamental way, the effects reverberate across the social and cultural spectrum.

One such fundamental change took place after the collapse of the Bretton Woods system in 1973. The change which began gradually and continues to date was the intensification of competition due to the falling rates of profit. Coupled with the gradual desensitization and resistance of the population to the advertising pitches, the increased competition made selling a more stressful occupation than it was in the heydays of the U.S. industrial power. This gradual, but persistent and grinding trend demanded that the salesman be more “productive”; he had to sell more than before in less time than before.

But other salesmen faced the same conditions, so it became tough for everyone to make a living.

The ensuing stress darkened salesmen’s mood, with the result that passive Willy Loman gave way to the obscenities spewing, conniving and downright criminal salesmen of Mamet’s Glengarry Glen Ross. How much can a man take!

Given the salesmen’s social influence, his darkened mood and conduct have affected society in several unflattering ways.

One is the acceptance and institutionalization of rough language in the daily conversation. Salesmen are the point of contact of a business with the outside world, so their conduct, considered as the response of adults to the real-life conditions, is taken as the proper, logical and “natural” conduct. If the salesmen are cursing, then it must be how people in the “real world” communicate, how things get done in the real world.

This has been especially pronounced in the salesman-shaped and sales-man dominated cultures of the U.S. and U.K., where TV and movies, those reliable disseminators of salesman’s culture, incessantly propagate the message. Anyone comparing the language of a TV sitcom or a Hollywood “action movie” in 2010 with 20 and then 40 years ago cannot help being surprised at the tremendous downward spiral of language and manners.

The right-wing politicians in these countries blame the breakdown of the family and manners and even “the rap singers” for the spread of profanities. But rap singers, mostly young black men in the ghettos, could have never had a cultural impact on suburban whites if the groundwork had not been prepared by the salesman – many of them suburban white men. The rappers simply followed a road that was paved for them by the real cultural trend setters.

Monday, 14 March 2011

A Recurrent Theme

Many in the West have commented on the composure of the Japanese in the face of calamity – office workers who did not leave their seats, supermarkets clerks who held the racks so they would not fall – and contrasted it with how people would have reacted in the West with that every-man-for-himself-and-may-the-devil-take-the-hindmost attitude.

A couple of a years ago, I wrote a brief comment on the very same subject, in (What Lies Behind) The Descent of Man.

Read it. You may find it pertinent.

Sunday, 13 March 2011

High Frequency Trading and Flash Crash – 6: The Destruction Has Come (here to stay)

This series began six months ago. Let us see what we know so far.
  1. Speculative capital, capital engaged in arbitrage, dominates the financial markets. (See Vol. 1 for how and why).

  2. Arbitrage is simultaneously buying (low) and selling (high) two different “targets” to lock in a riskless profit.

  3. Buying X low and selling Y high raises the price of X and lowers the price of Y, narrowing their difference and reducing the potential profit for the next round of arbitrage.

  4. To compensate for shrinking spread, speculative capital increases its size and piles up on the leverage, with the result that spreads shrink even further – and faster. From there, the defining characteristic of speculative capital follows:

  5. Speculative capital is self destructive. It eliminates the opportunities that give rise to it.

  6. Let us be precise: Speculative capital eliminates only those opportunities that it actively exploits. That follows from arbitrage the way conclusion follows from premise. But speculative capital is not suicidal! It ferociously defends and preserves itself as the best man-made science-fiction monster ever could, precisely because it uses man to that end. So while destroying the arbitrage opportunities in one place, like expanding matter that creates space, expanding speculative capital at the same time creates opportunities elsewhere. Speculative capital is the quintessence of dialectics.

  7. The more recent opportunities tend to be more difficult to exploit because they: i) do not immediately stand out and must be uncovered; ii) generally involve several markets and jurisdictions where simultaneous execution of trades poses operational challenge; and iii) demand relatively larger capital by virtue of (i) and (ii).

  8. They are also riskier. It is risk management 101 that the more pieces a system has, the higher the chances of its breakdown. (Boeing engineers know that, too. A 747 has 5 million pieces. A 787, when it is finally delivered, will have 3 million.) It is one thing to buy a currency low in New York and sell it high in London. It is a different thing altogether to short Treasuries in the US and use the proceeds to create an equivalent option position on some equity index in Japan. In the latter example, if the source of funding dries up, the strategy would unravel. That is what happened in the market meltdown of 2008.

  9. What would you do, then, if you were speculative capital – by definition the fountain of riskless profit – in the face of such increasing risk?

  10. Why, you’d discover HFT.

    Or, rediscover, as HFT is the adaptation to the new circumstances of old ways.

    Here is the game plan. When a fund places an order to buy say, 100 thousand shares of a stock, the order has to be broadcast to reach the “market”. Before it reaches the market, we intercept it – like the “Rosenzweigs’ agent” – and get ahead of trade, buying as many shares as we could. After the order reaches the market, it would push the share price higher, by however small an amount. We then sell it for a profit. The profit would be razor thin and about a fraction of a penny. But as every retailer knows, we make up for low margin by volume, by repeating the process tens of millions of times a day. We do the same with the sell orders, only we sell instead of buying.
That’s HFT in a nutshell.

At its core, HFT is the old fashioned front running, that reliable strategy of pit traders and market makers when everything else had failed.

But as a dialectical entity, speculative capital never uses the opportunities it finds in their historical mode for long. Rather, it transforms them into a qualitatively higher mode, a synthesis which contains the older form but is something different from it.

In HFT, this transformation takes the form of the replacement of men by capital.

In the Rothschild story, the focus was on the man. Front running, too, has always been the story of unscrupulous traders and brokers.

In HFT, the individual is taken out of the picture. He is replaced by speculative capital. Speculative capital becomes the grammatical subject of the sentence as if it were alive: speculative capital engages in HF trading.

The transformation is liberating. In the old days, a broker could be charged with front running. In HFT, the idea becomes ludicrous. Surely you are not suggesting that the law should apply to a thing? That's how the modern economics is “value-free”.

But speculative capital is not a single entity. Nor does it have a command and control center. It is, rather, the sum total of all capitals engaged in arbitrage, spread among thousands of hedge funds and proprietary trading positions across the globe. At times, a large portion of this mass acts in unison, something that crack Wall Street researchers have recently noticed and dubbed “risk on, risk off”.

At other times, its different segments compete with, and go against, each other.

Only a small fraction of speculative capital is devoted to HFT – only so much that the relatively small field can absorb. And the return from HF trading is very low. A Kellogg Ph.D. dissertation concluded that 26 firms which control 75% of the HFT make about $3 billion annually on $30 trillion trading volume. Such low returns are expected from a business model which constantly squeezes the spreads.

Still, other segments of finance capital consider the interception of their orders and shaving off of even a fraction of a penny from their profits a flagrant robbery. (The business is actually that competitive.) They refuse to be robbed, and take actions to “protect” themselves. And what could be the defense against faster predators who feed on intercepting one's orders? Why, not showing the orders altogether. Hence the rise of private exchanges, dark pools and internal settlement mechanisms, all of which come into being so that large trades would be executed privately and out of sight of prying eyes.

The rise of these private exchanges and mechanisms diminish the role of the “market” and get in the way of “price discovery”, that leitmotiv of every clerk and scribe who taught business and finance in a Western university. (The above links give only a bland and bloodless description of private exchanges and dark pools. Still, the purpose of these new “developments” comes across. In internal settlement, a broker matches my order for buying 100 IBM shares with your order selling 100 IBM shares internally without transmitting them into the exchange. Again, the volume and price information is distorted.)

The ignorant, pompous academics who envisioned continuous-time finance considered it the crown jewel of their intellectual achievement. In addition to technical breakthroughs such as option valuation – and they got that one wrong too – two critical, ideologically empowering conclusions seemed to follow from it.

One was the participation of the populace in trading. Continuous-time finance meant continuous-time trading. And how could continuous, incessant trading be possible without the mass participation of the people – just like a highway that could be crowded only if everyone with a car is on it! That was the true spirit of democracy and the proof that free markets would strengthen democracy, and vice versa. Three cheers for markets and democracy, everyone.

And democracy was profitable, too, which is what mattered in the final analysis. This second benefit of continuous-trading came from price discovery. Everyone knew – the non-believers were directed to the “works” of Milton Friedman and Paul Samuelson – that the more frequent the trades in a market, the more transparent and efficient the prices. Naturally then, as these masters and their followers had shown, markets in democracies offered the best price to buyers and sellers. One only had to compare the liquidity and smooth movement of wheat futures prices in the Chicago Board of Trade with the arduous and time-consuming haggling over the price of goats in an Ulan Bator Friday market to be convinced of all self-evident truth.

That capital has a tendency to concentrate – a tendency that was well-known to even laymen as early as the mid 19th Century and the reason for the passage of many anti-trust and anti-monopoly laws – was never considered. It never crossed the minds of the luminaries of finance to examine the meaning of their discovery or put it in the context of the larger economic activities.

I pointed out in Vol. 1 that continuous time finance corresponds to continuous turnover of capital, “a notion so utterly absurd as to be insane.” And added later about continuous-compounding, a logical by-product of continuous-time finance: “Continuous compounding is the vision of a Shylock gone mad.”

Notice the words I used in 1998: mad, absurd, insane.

So, how are things now? What has in point of fact come to pass?

Two short news items will suffice for the answer. The first one pertains to the concentration of capital, from the Financial Times, Jul 29, 2009:
The Tabb Group, a consultancy, recently estimated that high-frequency trading accounts for as much as 73 per cent of the US daily equity volume, up from 30 per cent in 2005. Tabb estimates these players, some of the largest of which are hedge funds such as Citadel, D.E.Shaw and Renaissance Technologies, represent about 2 per cent of the 20,000 or so trading companies operating in the US markets.
There you have it: about 75% of the daily equities trading volume in the US is HFT. The order for this trading volume comes from just 2% of all the trading firms.

As for destruction of the market, let us hear it from an insider (Financial Times November 8, 2010):
“Most of the world views our market structure as a joke,” said Larry Leibowitz, chief operating officer at NYSE Euronext... “Our market is too fragmented. The challenge is, how much competition is too much competitions,” he said.
I don’t know Larry Leibowitz, but based on 8 words – Larry Leibowitz, chief operating officer at NYSE Euronext – I could write a 10,000 word treatise on him! And so could you. Imagine the number of times he must have been a keynote speaker talking about the merits of entrepreneurship.

Yet, there he is, the COO of an exchange, of all places, criticizing competition, of all things.

Larry, you hypocritical ass, we hardly knew ya!

But of course I am being unfair; too hard on Larry. Competition is the form under which the self-destruction of speculative capital appears to businessmen. That's how it manifests itself and impresses itself upon their minds. (The increasing instances of flagrant contradictions that you see – Tony Blair teaching religious tolerance, for example, or European Socialist government drastically cutting social services – are the result of the inability of businessmen and their minions in the government to comprehend their surroundings. In its advanced stage, speculative capital makes its working difficult to comprehend. For the first time ever, businessman becomes out of his element in the business environment. I will have more to say on this in Vol. 4.)

This doctor calls the patient: “I have good news and bad news.”

“Ok, doc, let’s hear them,” says the patient.

“The good news is that you’ve got 24 hours to live!”

“Gee, doc, is that your good news? Then what’s your bad news?”

“The bad news”, says the doctor, ”is that I forgot to call you yesterday.”

I have good news and bad news for Larry.

The good news is that soon no one will consider the US market structure a joke because everyone will have a similar structure. Everyone will go the way of the Turks and the Istanbul Stock Exchange.

The bad news is that the destruction is still in its early stages. Many markets have yet to be brought into the orbit of the HFT. Only then will the full scale of undoing become apparent. And that will come with the inevitability of night following day. Otherwise speculative capital would not be speculative capital. And that could not be!

I have not yet finished with the subject.

Friday, 11 March 2011

How To Pay Of Credit Card Debt

Debt is not good for any person as you know that its very hard to come out from the chain of debt. Its your own responsibility to avoid debt but unfortunately due to our lifestyle and other requirements in life we enter in the depth of debt. There are many circumstances come in our life where we require money and on that time we borrow money from the bank and other financial sources. But unfortunately when we can not return the money then we add our name in the list of debt. Another example is due to frequent use of our plastic money. We apply for credit card and once we get the credit card then we start the random use of this plastic money without any proper plan that how we will pay the bills of credit cards. Its look very easy to use the credit card as we know that we have to pay the credit amount at the end of the month but suddenly when the bill of credit cards arrive at the door of our house and we will see the bill of credit cards are huge and we can not pay the bill of credit card then we have to enlist our name in credit card debt.

If you are in credit card debt then you have to think about the solution to solve your debt. People at this time may wonder and they search for the positive path by which they can solve their debt. Its very hard to pay your debt as you know the debt amount is not a small. If you want to really pay your debt then you can do this but you have to move in correct path to solve your debt.

You should make a plan to pay your debt. If you have many different credit card debts then you should give the priority that which debt you will pay fast and why?
Firstly, You should pay the debt of those amount where the interest rate is high so you should make a sheet with all of your credit card debts and arrange them for highest interest rate to lowest.
You know that you are in debt so at this time you should avoid unnecessary spending.
You should stop the use of credit cards so there won't be add any new amount with the debt. 
You should make regular payments on the other credit cards.
You should try to pay the amount as much as possible.
If there is any chance or source from where you can get your own money then you should put it all onto your debt. In this way you can pay your debt in quicker way.

Monday, 7 March 2011

In Case You Were Thinking That Lawsuits Might Reform the Credit Raters ...

Well, think again.

Time to play connect the dots, with the New York Times getting us started in fine fashion. First, the article linked above notes a disturbing trend taking shape:
... since Dodd-Frank passed, Congress’s noble attempt to protect investors from misconduct by ratings agencies has been thwarted by, of all things, the Securities & Exchange Commission. The S.E.C., which calls itself “the investor’s advocate,” is quietly allowing the raters to escape this accountability.
What accountability? As Gretchen Morgenson tells us:
The Dodd-Frank financial reform law, enacted last year, imposed the same legal liabilities on Moody’s, Standard & Poor’s and other credit raters that have long applied to legal and accounting firms that attest to statements made in securities prospectuses. Investors cheered the legislation, which subjected the ratings agencies to what is known as expert liability under the securities laws.
Why would the SEC do anything that subverts Dodd-Frank so openly? Aren't these our brave regulators, our white knights (yes, with a fondness for porno, but what do you expect in the postmodern age)? Ah, but see, there was a problem when push came to shove on this "expert liability" point.
When Dodd-Frank became law last July, it required that ratings agencies assigning grades to asset-backed securities be subject to expert liability from that moment on. This opened the agencies to lawsuits from investors, a policing mechanism that law firms and accountants have contended with for years. The agencies responded by refusing to allow their ratings to be disclosed in asset-backed securities deals.
So basically, the credit rating services said, "We'll hold our breath until we turn blue."

And the SEC blinked. Actually, double-blinked. Check out this whopping beaut of negligence:
At the time, the S.E.C. said its action (i.e., the agency temporarily removed the "expert liability" threat and said it wouldn't bring enforcement actions against issuers that did not disclose ratings in prospectuses) was intended to give issuers time to adapt to the Dodd-Frank rules and would stay in place for only six months. But on Jan. 24, the S.E.C. extended its nonenforcement stance indefinitely.
Indefinitely. Golly, that has a sort of open-ended ring to it. Hey, let's face it: Like diamonds, indefinitely may be forever.

Okay, now let's do the New York Times one better and finish connecting the dots for them. Because left unanswered is a big question: why the hell are credit rating services so scared of being held responsible for how they grade asset-backed products?

Jeez, I think I know this one -- in fact I think I blogged this one -- twice over! Just go here for a full explanation:

The Ratings Charade Continues: a CLO Investigation, Part I
The Ratings Charade Continues: a CLO Investigation, Part II

You see, the credit rating companies can't afford to be held legally responsible for the grades they assign to asset-backed securities, such as collateralized loan obligations, because they know they would lose in court if these ratings were challenged! The ratings are clearly bogus. I show that above, using nothing more sophisticated than sixth-grade math.

Further, these companies must know their ratings on asset-backed securities are wrong, unless they're incompetent to a mind-blowing degree.

And now the SEC is giving Standard & Poor's and Moody's a free ride on their bogus ratings, aiding and abetting the crime ...

What a great country we live in, eh? Where does the U.S. rank on that global corruption scale again? ;)

Friday, 4 March 2011

You Should Settle Your Tax Debt In This Way

The role of debt in our society is increasing tremendously and the concern of debt is very serious. Tax debt is also a type of debt and the number of people are increasing in the row of Tax debt. Every people should aware about the their Tax liability. If you will not pay your tax then you will be associated with the debt of tax. This is absolutely not good to add your name in the list of tax debt. But unfortunately, if your name have been added in the list of tax debt then you have to think about the solution to solve your tax debt. 

You can not seat calmly if you are in debt of tax because in this way you can not out from the debt of tax. There are many options available to get relief from the tax debt and one of  the option available to get out of tax debt is settlement of your tax debt. If you will do settlement of your tax debt then you can get a huge relief from your tax debt. You should choose this option when you know that you can not pay all the amount of tax debt. So, in this situation you can do the settlement of your tax debt with an offer in compromise. 

If you will settle your tax debt for less than what you actually owe, this is known as an offer in compromise. In an offer in compromise, IRS will get less amount from you so they will not listen you but if you will convince him properly then IRS can agree with you for an offer in compromise. When you will convince the IRS then you have to prove them that your financial situation is very poor and you can not pay all the amount of tax debt. The IRS will be agreed, if the amount in an offer in compromise is more than the amount which they could collect from you.

You can also get the help from a Tax professional, enroll agent etc to settle your debt of tax. The professional can help you in a big way as they have all the education and license in this field. They can go through with your case and then they will provide you a proper advice. They can also provide the information about the forms and procedure about the tax debt settlement.