debt settlement

**Debt Settlement**

Debt settlement is a financial strategy where a borrower negotiates with creditors to reduce the total amount of debt owed, often paying a lump sum that is less than the full balance. This approach can help individuals manage overwhelming debt and avoid bankruptcy, but it may impact credit scores and involve fees. Debt settlement is typically pursued with the assistance of professional agencies or through direct negotiations, providing a potential path to financial relief for those struggling with unsecured debts.