Debt Settlement is the process of paying off debt to a creditor after mutually agreeing to a sum less than what is owed. It is often confused with debt consolidation or debt management. It is a form of debt relief that is considered by financial experts to be extremely dangerous. Usually, only unsecured debt, such as credit cards and medical bills, is eligible for settlement. In debt settlement, the consumer makes monthly payments, out of which the debt settlement company takes its fees for the legal work or negotiation and payments are paid to the creditor.
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