Debt relief isn’t a quick fix for money problems. The process, also called debt settlement or debt resolution, involves paying a company to negotiate with your creditors in hopes of getting them to agree to settle for a sum that’s less than you owe.
The approach can pay off for those who stick with it: according to the American Association for Debt Resolution’s 2023 Economic Impact Report, the average client saved about $1,440 per enrolled account — roughly 32% of the balance owed on each account at enrollment, after fees.
Because debt relief companies generally recommend that you stop paying creditors in order to increase their negotiating leverage, your credit score will almost certainly suffer, and you could find yourself…