Dear Liz: Finance companies claim if you owe too much credit card debt that by law you need not pay it all back, but can retire some or most of this debt. They say this is not a credit card debt reduction program through balance transfers or debt consolidation loans. With debt settlement, the debtor stops making payments on their credit card debt, hoping that the issuers eventually will settle for less than what is owed. AdvertisementMost people who struggle with credit card debt would be better off filing bankruptcy or using a credit counseling service’s debt management program. Bankruptcy, meanwhile, allows credit card debt to be legally erased without triggering a tax bill.
