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Friday, October 23, 2026Updated 15:22 UTC

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Debt Settlement Is for Debts You Can’t Repay – Count the Fees and Taxes First

Source: Money Crashers · Oct 23, 2026 12:00 UTC

Torn U.S. one-dollar bill on a white background — File photo Images_of_Money / Flickr · CC BY 2.0 · Source

The Quick Take

Debt settlement can shrink what you owe, but it costs months of missed payments, a fee that typically runs 15% to 25% of the debt you enroll, and often income tax on what’s forgiven. Use it only when your accounts are already in collections and you can’t repay them even on a lower-rate plan. Source

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