The term settlement or settle means: “to compromise”! Put another way, it’s a an agreement to substitute, for an existing debt or obligation, some alternative form of discharging that debt.
The term, ” satisfaction” is the actual discharge of the debt by the substituted means. Compromise is an agreement to perform some action, while satisfaction is the actual performance.
Satisfied means the fulfillment of an obligation or claim, such as the full payment of a debt. Using these definitions, we can clearly see that settling debts means that the original debt is not paid in full and that some lessor amount is accepted as a means of satisfying (or discharging) the debt.
BEFORE offering to settle ANY debt, ALWAYS check to see if the Statute of Limitations (SoL) to enforce the debt has expired. See this page for more information…