Debt settlement
Debt settlement Debt settlement as a general definition is in the meaning of using different methods and plans for settling a debt amount. As a financial term, it is defined more specifically as the process of additional negotiation for payment of a debt amount, where the negotiated sum is usually less than the total default monetary sum. This is a clearing-debt option, where the indebted subject settles the past-due payment, transferring a smaller amount to the creditor, and the debt is considered as settled in full.