Debt Settlement agencies work with you and your creditors to help you become debt free. However, unlike Credit Counseling or Debt Reduction agencies, who work with your creditors to get you a lower interest rate, Debt Settlement agencies work with your creditors to reduce your debt balance, sometimes by as much as 50-75%!

Debt Settlement could save you thousands off your current debt balance, however, keep in mind that whatever money your debt settlement saves you, you do have to pay capital gains tax on.