Walking away from a debt settlement program creates a cascade of financial consequences that could cost you more than expected. Muhammad Aqib/Getty Images

In today's high-rate environment, debt settlement programs, also known as debt forgiveness , have become increasingly popular. These programs, which are typically structured over two to four years, allow borrowers who can no longer afford their debt to try and settle it for less than what's owed . During the process, borrowers make one monthly payment to a debt relief company while it negotiates with creditors on lower lump-sum payoffs . In other words, it's a structured, strategic way to regain control.

As with any relief strategy, though, consistency is key. The monthly payments made to these programs are what fund the

See Full Page