Debt Settlement is the action or negotiation made on behalf of a consumer with that consumer’s creditors for the purpose of the creditor forgiving part or the entire principal of the debt incurred or credit extended to that consumer. The term debt settlement shall not include any action taken to convince a creditor to waive any fees or charges. It is also known as debt arbitration, debt negotiation or credit settlement. The debts such as credit card debts, other unsecured credit card debts, medical bills, gas/store card debts, and personal loans can also be settled by way of debt settlement. However, tax debts, alimony, child support, mortgages, car loans, and federal student loans cannot be settled in a debt settlement program.