Debt negotiations services are heavily represented in the media at the current time. You cannot turn on your television or radio and not hear a commercial for a company that can solve all you problems by helping you pay less on your credit cards than what you owe. While it is true that you can settle your debts for less than you owe, there are some things you should know before you do business with the first debt settlement company that comes along. Debt settlement is not without its negatives among them are bad credit as a result of not paying your balance in full and having to pay income tax on the amount of the debt that is forgiven.