debt settlement
Paying less owed
Debt settlement is negotiating with creditors to pay less than the full amount owed, typically as a lump sum.
Debtors or companies acting on their behalf offer creditors partial payment in exchange for forgiving the remaining balance: After months of negotiation, they reached a debt settlement for sixty cents on the dollar.
Creditors may accept settlement rather than risk getting nothing through bankruptcy.
- credit counselingAdvice for handling debts
- repayment planTerms for returning borrowed funds
- charge-offDeclaring debt uncollectible
- negotiationDiscussion seeking mutual accord
- creditorOne owed money
settle for less · insolvency · statute of limitations · consumer protection · lump-sum payment · financial hardship · hardship · default · collection agencies · past due · financial stability · financial literacy · lending practices · pay off · payment · account · stress · lump sum
- debtcreditor, owe, debtor, lender, unpaid
- debt helpcredit counseling, repayment plans, hardship programs, bankruptcy
- debt reliefloan forgiveness, bankruptcy protection, fresh start, student loan forgiveness, mortgage relief
- financial arrangementsloan, credit agreement, payment plan, installment plan, credit line
- financial reliefbailout, loan forgiveness, stimulus, tax relief, forbearance
- postwarrebuilding, demobilization, peace treaties, treaty signing, war reparations
debt settlementdebt avoidance
Steering clear of borrowing
borrowing · defaulting · debt spiral · overleveraging · credit utilization