Debt settlement is a practice that entails paying a lump sum amount (lower than your owed amount, by maturity) to resolve your debt. It typically involves a third-party mediator who negotiates on your behalf with the creditor. While this may sound lucrative, there are inherent risks attached, including penalties for late payments, impact on your credit score, debt relief scams, and more. Know the risks from Roundleaf’s expert consultants. Let’s get started!