debt settlement
noun[CorU]
ukusFINANCE
afinancialagreementbetween aborrowerand alenderin which theborrowerpaysback less than thefullamountof adebtand thelenderagreestoacceptthis asfullpayment:
Debtsettlementcompanies, whichoffertoarrangedebtsettlementsfor borrowers, oftenrequireabigpaymentupfrontfortheirservices.