It would be best to have an expert opinion on debt relief options to help answer those questions. Debt settlement is an agreement with a creditor to pay less than you owe but still have the debt considered satisfied.

The first step in debt settlement is to gather as much information about your debts as possible. You’ll need to know the balance, the interest rate, and the minimum monthly payment for each debt. This information will help you create a  budget and debt payoff plan.

5. How to Settle Your Debt for Way Less Than You Owe

The next step is to create a budget. You’ll need to list your total income and expenses and make sure you have enough money to cover your monthly debts. If you don’t, you’ll need to find ways to reduce your spending or increase your income.

The next step is to create a debt payoff plan. You’ll need to list your debts in order from smallest to largest and figure out how much money you can afford to put towards your debts each month. You should also make sure you have a savings account with at least $1,000 in it. This will help you cover unexpected expenses. 

And, most importantly, you’ll need to ask creditors to lower your interest rates and set up a plan for paying off your debts. If they refuse an offer, don’t give up right away. You may need to contact your creditors multiple times before agreeing to a settlement. 

Debt settlement isn’t appropriate for everyone, so you should consider all of your options before pursuing debt settlement.