Decision guideDebt 4 min

Debt settlement company — or do it myself?

Debt settlement means paying a creditor less than you owe to close the account. It's a real tool — but it only works on debts already in default, it costs your credit, and a company charges 15–25% of your enrolled debt to make phone calls you can make yourself. Let's see which route fits.

30-second explainer

38s

The short version — then walk through the questions below for your situation.

Question 1 of about 4

Where are your debts right now?

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Educational only — not legal, tax, or financial advice. Typical ranges are shown; your contract, lender, and state law set the exact rules. MoneyFAQ is not a lender.