Debt settlement, also known as debt arbitration or debt negotiation, is an approach to debt reduction in which debtors and creditors agree on a reduced balance that, once satisfied, is considered payment in full.
As long as consumers continue to make minimum monthly payments, creditors will not negotiate a reduced balance. However, when payments stop, balances continue to grow because of late fees and ongoing interest.
If you need help getting out of debt, we recommend starting with a free debt consultation with a professional debt counselor. You can also try debt counseling.
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