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Discover Ludwig"debt settlement" is correct and usable in written English.
You can use it to refer to an agreement to repay a debt with a reduced amount or at a lower interest rate than what was originally agreed. For example, "After months of negotiation, the company was able to agree to a debt settlement with their biggest creditor."
Exact(59)
§ 116.7 Debt settlement plans filed by terminating committees; Commission review.
DEBT SETTLEMENT So should debt settlement companies be avoided at all costs?
Have you ever used a debt settlement firm?
The debt settlement industry can afford some extravagance.
Here's what typically happens in a tax debt settlement scam.
Debt settlement is a compromise, adjustment, or cancellation of an FLP debt.
Debt settlement programs boomed after the housing market collapse, the recession and the rise in unemployment.
Debt settlement firms typically offer to negotiate with creditors in exchange for a fee.
The agency also will oversee debt settlement firms, debt collectors and check-cashing stores.
For consumers on the verge of default, debt settlement companies promise relief.
Similar(1)
Next month, new Federal Trade Commission rules for debt-settlement companies will begin going into effect.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com