If you’re buried under credit card bills and collection calls, debt settlement might look like an easy way out. Ads promise to slash your debt for pennies on the dollar — but what they don’t highlight is the cost that comes with it.

Here’s the reality: Most debt settlement companies tell you to stop paying your creditors while they negotiate. This tanks your credit score fast and puts you at risk of lawsuits, wage garnishment, or even aggressive collection tactics.

Worse yet, there’s no guarantee your creditors will agree to settle. You could spend months — or years — making payments into an account for the settlement company’s fees, only to find out nothing gets resolved.

And don’t forget Uncle Sam. The IRS often treats forgiven debt like income, so you might end up with a tax bill just when you think you’re in the clear.

It’s not all doom and gloom — for some, debt settlement can help. But it’s not the magic wand it’s often sold as. If you’re feeling overwhelmed, talk to a nonprofit credit counselor or trusted financial advisor first. There may be safer, more predictable ways to get back on your feet without risking your credit, your wallet, and your peace of mind.