Don't enroll in a debt resolution program before you fully understand the potential credit impacts. RerF/Getty Images

When you're overwhelmed by credit card balances, medical bills or personal loan payments, the idea of debt resolution can feel like a lifeline. Debt resolution, also called debt settlement or debt forgiveness , promises to negotiate down your balances, sometimes by 50% or more . It's one of the few tools that can shrink what you owe and create a more manageable path forward. And in a year when credit card rates are hovering at record-highs and cardholders owe a collective $1.23 trillion in credit card debt, many borrowers are taking a closer look at whether this strategy could offer some much-needed relief.

But even when debt resolution makes financi

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