by 
The Curious Bag
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<h4 class="dechead">On One Hand: Debt Settlement Works
Debt settlement companies reduce debt by negotiating lower payments with your creditors and/or giving you a lower interest, long-term loan to cover the debt you owe. Reducing your monthly payment relieves stress and allows you to pay off your debt more aggressively, or just live a little larger.
On the Other: Debt Settlement is Dangerous
The chief danger of debt settlement is that it addresses a symptom, not the problem. It reduces your current financial burden but doesn't encourage you to change the habits that got you in debt trouble in the first place.
Bottom Line
For many families, debt settlement simply postpones the inevitable result of bad financial decisions. Within a few years, they were back in serious debt trouble. If you are suffering from a one-time debt problem (from a divorce or failed business, for example), this might work for you. However, if your debt resulted from poor spending habits, debt settlement probably isn't the right choice.
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