There are different solutions that citizens of Rhode Island can take advantage of when they are in need of help for their debts. Debt settlement is another option that is available to consumers. This method involves the debt settlement company negotiating with your creditors, to reduce your bills by 40 – 60 percent. With debt settlement, you will no longer have to pay the original outstanding balance on your debts. How it works, is the debtor pays a fixed amount each month and when there is sufficient funds in the account, a representative will pay off each creditor, one by one.