Is Loan Settlement a Smart Move? Pros, Cons & Tips

Are you facing mounting debt and wondering whether loan settlement is the right step? If you’re feeling overwhelmed by loan repayments, it’s essential to weigh your options carefully. In this comprehensive guide, we’ll explore whether settling a loan is a smart financial move, its advantages, drawbacks, and the best practices to follow.

What is Loan Settlement?
Loan settlement is a process where a borrower negotiates with their lender to accept a reduced amount as a full and final payment for a loan that cannot be repaid in full. The remaining balance is waived by the lender, usually due to the borrower’s genuine financial hardship.