What is debt settlement?
Debt settlement means negotiating with creditors to accept less than the full balance, usually after accounts become delinquent.
How can I negotiate myself?
List each debt, review your budget, save settlement funds, and contact creditors with a realistic written proposal.
Does settlement affect my credit?
Settlement can affect credit scores, add fees, and potentially create taxable canceled debt. Consider professional tax advice.
What should I request in writing?
Never promise payment you cannot make. Request agreements in writing before sending money, and keep detailed records.
What alternatives should I consider?
Compare hardship plans, nonprofit counseling, consolidation, and bankruptcy information before choosing a strategy for your situation.