Debt settlement scams are designed to exploit people facing financial hardship by promising to erase debt quickly—for a hefty fee. These companies often charge illegal upfront payments, offer fake guarantees, and then vanish without resolving any debt. Victims are left with damaged credit, increased debt, and little legal recourse if they don’t act fast. This article helps you recognize the signs of a scam, understand how legitimate debt relief should work, and take action if you’ve been targeted. You’ll also find resources for reporting fraud and exploring safe alternatives like nonprofit debt counseling. Protect your finances and peace of mind—learn how to spot a scam before it’s too late.