• Sometimes settling on a debt is the only way to get it paid off.credit card and hand image by Warren Millar from Fotolia.com
  
  

Accept Settlement Offer

• There are a few benefits to settling a debt, rather than leaving it unpaid. According a The Credit Info Center, settling a debt can help a consumer save money by lowering the debt amount or clearing up the debt, and can help the consumer avoid a law suit from being filed by the creditor or collection agency.
  
  

Pay Debt In Full

• A settled debt sometimes looks worse to a future creditor than one paid in full. ChristiaNet suggests not settling a debt and paying off the debt amount in full, by either tightening finances elsewhere or finding additional income.
  
  

Bottom Line

• It is best to get the debt paid off whether settled or paid in full. The Credit Info Center suggests engaging in a negotiation with a collector because some will offer a settlement and possibly allow your credit report to list the debt as paid in full.