What are the risks of trying to settle debt on your own?

MoneyWatch: Managing Your Money What are the risks of trying to settle debt on your own? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications. Read Full Bio Angelica Leicht May 15, 2026 / 11:14 AM EDT / CBS News Add CBS News on Google Settling debt on your own is risky, but it's a path worth considering if you're dealing with debt you can't afford. J Studios/Getty Images Borrowers are carrying record levels of credit card debt across the nation right now, and with average credit card interest rates still hovering close to 22%, many are finding themselves in serious trouble financially. Payment delinquencies are increasing, as is the number of borrowers facing collection action, and many are now searching for faster and cheaper ways to regain control of what they owe. And, while today's high borrowing rates are causing part of the issue, inflation pressures and elevated borrowing costs are adding to it by straining household budgets even further.That environment has made debt settlement an increasingly appealing option for borrowers who simply can't keep up. The idea of negotiating directly with creditors to reduce balances — especially without paying a third-party company to help — can sound quite attractive to borrowers who can't cover their essential expenses, much less their debt payments. And, the idea of do-it-yourself debt settlement strategies seems straightforward and easy to manage, too.But while working directly with your credi...