Can debt settlement eliminate or lessen interest, fees, and penalties?
Unfortunately, no. Debt settlement can only negotiate to reduce the total amount of the principal you owe. The principal is the amount that you actually charged, while fees and penalties accrue as a result of your payment habits. For example, if you have made late payments, you will have been charged late fees. Interest adds up on the balance each month, and can only be discharged by paying the principal. So although debt settlement won’t be able to get your penalties or fees waived, or have your interest rate lowered, it can help prevent further accumulation of these additional expenses, since it can get you out of debt. Remember that interest will still rack up on any revolving balance, or balance that is not paid off in full each month. If you have been paying only the minimum due on your cards, there’s a good chance you are paying only the interest and none of the principal. By reducing the total amount of principal owed, debt settlement can help you pay off your debt and the inter
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