Kairon - There are some benefits to debt settlement. You can satisfy a debt in full while paying less than the full amount (make sure you get this in writing). This can save you a substantial amount of money. Some collectors will even agree to delete any negative information on your credit report, much to the chagrin of the credit bureaus. On the pther hand, there is a dark side to debt settlement. Many of these will appear on your credit report as a settled debt rather than paid in full. If you fail to get a written statement from the collector that you no longer owe anything on the debt, they may sell the remainder to another collection agency.

http://www.debtmanagers.ca/