Debt settlement involves offering a large one-time payment that is less than the total owed in exchange for the creditor forgiving the remaining balance. For example, someone who owes $20,000 may offer $15,000 to settle the debt. While debt settlement can eliminate monthly payments and reduce total debt, it typically lowers the consumer's credit score since it appears on their credit report, making it difficult to qualify for new loans. Professional organizations can help consumers negotiate and manage the debt settlement process.

1. What is Debt Settlement?
Global Client Solutions

2. Introduction
• Global Client Solutions processes payments for
companies and consumers participating in debt
settlement arrangements. The unique tools offered by
Global Client Solutions help customers pay off their
debts more efficiently to accelerate positive outcomes for
both the companies and the customers.
Debt settlement usually involves offering an immediate
large payment on an existing balance in return for the
forgiveness of remaining debt. Someone who owes
$20,000 on a single credit card, for example, might offer
$15,000 as a one-time payment in exchange for the
forgiveness of the remaining $5,000.

3. Debt Settlement
• For those who can make such payments, debt
settlement is a great way to eliminate monthly
payments to creditors and reduce total debt.
However, a settlement does typically show up on the
consumer's credit report and lower the credit score.
That means that consumers with already low credit
scores often find it difficult to qualify for new loans
or lines of credit after completing a debt settlement.
The consumer can manage the settlement process or
rely on the assistance of a professional or
organization that specializes in debt negotiations.