What is Debt Settlement and how does it work? Debt settlement is getting your creditors to agree to a lesser amount than what is currently owed. Generally speaking, debt settlement does not involve long-term payment plans, but is a lump-sum that represents a percent on the dollar of what is actually owed.

So we know we’re always being encouraged to live for today and spend money we don’t have, but when is it okay to spend more than what we can afford to pay off in one fell shot; when is it okay to finance something?

Most would say that buying a home falls under that category, even though at this time it certainly is not an appreciating asset.