Loan settlement is an agreement between you and the lender to pay a reduced amount to clear your debt.
1. Financial hardship.2. Loss of income.3. Unmanageable debts.
1. You negotiate with the lender.
2. Agree on a reduced settlement
amount.
3. You negotiate with the lender.se
the loan.
1. Helps reduce financial stress.2. Avoids legal complications.3. Settles your debt at a lower
cost.
1. Impacts your credit score
negatively.
2. May affect future loan eligibility.3. Not all lenders agree to it.
Full repayment keeps your credit healthy, while loan settlement is a last resort to avoid defaults.
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