debt settlement company, how does it work

Some people may disagree with me, but I do not view these services kindly. Usually, the people seeking their help have multiple accounts, each totalling thousands of dollars. Typically, the settlement company accumulates money in their accounts (after taking out enough for a nice fee) and once they have enough to settle one of the many debts, they do so. The problem is, the remaining creditors who have been screaming for their money decide to sue, causing you to face the bankruptcy option - something most people SHOULD have done in the first place before wasting their money and time on these settlement companies. By the way, the settlement company can claim this situation was a success because they settled debt for pennies on the dollar - just like they promised. Too bad it was a complete waste of money.

If you want to deal with debt outside of the bankruptcy system, I ONLY recommend people go with their local consumer credit counseling service, FUNDED BY THE UNITED WAY. They are the only ones that take a legitimate fee for their services, and will usually deal honestly with you (although their charters state they can never recommend the bankruptcy option to anyone).

Seek help of a qualified local attorney before attempting any debt repayment plan.