New Delhi, April 16 -- A smart approach to managing one's personal finances is to repay credit card debt while eliminating the possibility of additional fees. Though "settlement" typically refers to discussions with the credit card company to develop an alternative payment for a reduced amount, it may still negatively impact a credit score.

With this in mind, it is always a sound way to investigate possibilities that allow for paying back the full obligation without additional fees. Discussed here are aspects that detail how this works.

In a credit card settlement, the card holder and the card issuer negotiate an immediate payment of a lesser amount in exchange for settling the entire account. In cases where a cardholder has no means of...