Settlement Companies Can Get Your Debt Sorted Out

While all of us have the ability to negotiate with our creditors to reduce our level of unsecured debt; there are third parties (e.g., debt settlement companies) that can help you get the best deal to pay off your debt. Debt settlement companies are familiar with the latest changes to the laws and have contacts within the financial industry that can help them negotiate you a better deal. This is a highly regulated part of the industry in the US so be aware of what the regulations and laws are surrounding the use of debt settlement companies to help you get out of debt.

Debt settlement is highly regulated to protect people who need financial relief. There are some states that do not let interstate companies offer their services there unless they are a registered company on that state.

What types of Debt Relief is Available

Contrary to popular belief, debt settlement and debt consolidation is not the same thing. Debt consolidation is putting all your debts together to make it one but the debts have to be paid in full. Debt consolidation is exactly that. A debt settlement company negotiates with your creditors to get them off your back, reduce the total you owe and to work out a payment plan to pay off the remainder of your debt.

There are non profit debt settlement companies who have fees and structures according to the ability of the client to pay them. Beware of most companies offering to help you to settle your debts for free. Only a non profit debt settlement agency can do that. The rest are in business to make money some are good and will help you get your finances back on track; others wont. Some settlement companies are setup solely for the purpose to enrol members and do nothing more than sit back and take your money.

Make sure you know who you are dealing with before you sign any contracts with any debt settlement companies. If you end up working with a dodgy debt settlement company your debt will be higher than ever, and the company will have taken your money and run.

Remember, if something seems too good to be true then it usually is. That is why the debt industry is so tightly regulated in many states of America. In some place only registered lawyers or businesses can offer debt settlement options.

The third party debt settlement company negotiates on behalf of their client and acts as a power of attorney; but they do not make payments for you. In other words, you still continue to make the payments to your creditors personally. In some states this type of third party debt settlement is against their laws.

Make sure any settlement company you choose to work with is registered with the Better Business Bureau and has a good reputation.

Debbie White is a contributing writer to and is currently writing some special articles to guide businesses on how to manage debt and avoid bankruptcy. For Settlement Information and Debt Help Consultation, call toll-free 1-877-850-3328.

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