The biggest risk associated with debt consolidation is a lack of discipline resulting in new debt before you repay the existing debt. Taking on new debt defeats the purpose of consolidation. You’ll find yourself once again making multiple monthly payments, and, in the long run, you could end up in deeper trouble than when you started. When you take the debt settlement route, your current creditors will notice if you build more debt and may retaliate. The form of retaliation may be to require you to close your new account or even cancel any concessions made to your existing account, such as reduced interest rates, a longer repayment term, and/or debt forgiveness. Debt settlement also carries the risk that your creditors won’t agree to a relief plan. Some may instead decide to sue you in court and force you into bankruptcy. You may be unable or unwilling to complete the debt relief program, which could land you in bankruptcy court. The relief service companies cannot guarantee you will finish your program by a specified date or that you will save a specified amount.