Debt Settlement Companies

Debt Settlement Companies

Debt settlement companies provide the service of acting as an intermediary between a consumer and their creditors in order to satisfy the outstanding debt for a negotiated lower settlement cost.

Debt settlement companies are very popular these days with the high amount of credit card debt held by Americans during an economic recession. Many credit card holders are looking for drastic ways to quickly reduce their credit card debt.

A good debt settlement company should have a high Better Business Bureau rating. Consumers should check with the BBB before signing any contract for services.

The debt settlement company should act as an intermediary for collection actitivities instigated by the credit card company on behalf of the consumer. Many unscrupulous debt agencies simply take the consumer's money and attempt to make a settlement over time, yet ignore collection calls.

A good debt settlement company should have legal representation available for the consumer.

A good debt settlement company should have a certain percentage of all money paid by the consumer going to the credit card company rather than to their own fees and commissions. Consumers have a right to know these amounts and have them in writing as part of a contract of services. Further, fees for service should not be greater than if the consumer had negotiated the debt settlement themselves or paid their normal monthly rates.

Consumers should carefully research any debt settlement company before agreeing to contractual services.