NerdWallet: Settling debts with creditors could do more harm than good—consider these options No Comments Uncategorized Debt settlements can be financially risky, leaving you open to lawsuits, unexpected tax bills and credit damage. Debt settlements can be financially risky, leaving you open to lawsuits, unexpected tax bills and credit damage. Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to print (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Tumblr (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pinterest (Opens in new window)Click to share on WhatsApp (Opens in new window)