With debt settlement, individuals may utilize a third-party organization to negotiate with creditors on their behalf to accept less than the total amount of their outstanding debt as repayment. What this means is that the third-party will offer the creditor some level of reimbursement and then work to ‘settle’ the debt. Creditors may potentially consider negotiating, depending on their policies, and accept less than what they’re owed, possibly to ensure that they get at least a portion of the lent money back. The debt settlement company will often contact your creditors on your behalf. There are, however, some cons you’ll want to look out for when considering debt settlement.