Debt Settlement
Debt settlement is a process where you negotiate with your creditors to pay off your debts for less than what you owe. This usually involves making a lump-sum payment that is lower than the total debt. In exchange, the creditor agrees to forgive the remaining balance. Debt settlement can provide relief for those struggling to manage multiple debts, but it can also impact your credit score and may have tax implications. It’s advisable to work with a reputable debt settlement company or financial advisor to navigate the process effectively.
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Debt settlement is a negotiation process where a debtor works with creditors to reduce the total amount of debt owed. Instead of paying the full balance, the debtor proposes a lump-sum payment lower than the total debt. If the creditor agrees, the debt is considered settled, often resulting in a lower financial burden for the debtor. However, debt settlement can impact credit scores and may involve fees if done through a service. It’s typically a more viable option for individuals facing significant financial hardship who are unable to meet their payment obligations.