Credit Repair Glossary

• Debt Settlement

  “Debt Settlement” is a term used to refer to certain types of negotiation and settlement services (that you can do yourself) to pay a reduced amount to creditors.  Folks with bad credit or high debt ratios may be able to benefit tremendously from a well-structured debt settlement program.  Negotiation and settlement services are different from debt management services mainly because the debt settlement agencies do not send regular monthly payments to creditors. Instead, these agencies generally maintain a consumers funds in separate accounts, holding the money until the agency believes it can settle a consumer’s debts for less than the full amount owed.

  In the right situation, debt settlement can be a great way to manage your debt.