Debt settlement is a debt relief option where a debtor negotiates with their creditors to settle their debt for less than the full amount owed. This involves the debtor making a lump sum payment or a series of payments to the creditor, typically through a third-party debt settlement company.

Debt settlement is often pursued as an alternative to bankruptcy, and it can be a viable option for individuals who are struggling to keep up with their debt payments. However, debt settlement can also have negative consequences, such as damage to credit scores and potential tax consequences.

It is important for individuals to carefully consider their options and seek professional advice before pursuing debt settlement.