How Debt Settlement Companies Work
Debt Settlement companies are for people nearing bankruptcy. They can lower the overall amount that needs to be paid to settle the debt, but you will also incur additional charges, including maintenance, settlement and start up. These are added to you total balance.
Monthly payments are made until enough funds allow for a debt to be settled. Negotiations provide a settlement percentage and the debt is paid. This is repeated for each debt until all debts are cleared. Also expect complementary consultations and money management instruction from a credit counselor. Ultimately a good firm wants you out of debt forever.