 TITLE: What is Debt Forgiveness? CONTENT: What's the Difference Between Debt Forgiveness and Debt Settlement?\n-------------------------------------------------------------------\nDebt settlement is a process where you negotiate with a creditor to pay a lower amount of debt than you originally owed. This option is typically used on unsecured debt, like credit card debt, and only when you are severely behind on your payments. Since these negotiations really only arise when you are already struggling with debt, in most cases debt settlement will have a negative impact on your credit scores.\nDebt forgiveness—when a creditor wipes away all or some of your debt—is different from debt settlement, and is typically a result of you applying for or qualifying for a special program. As a result, if some or all of your debt is forgiven, your credit scores will most likely stay intact, typically making it a better option for someone looking to get rid of their debt. END