Some ways to do your own due diligence when it comes to dealing with debt settlement companies include: – Ask lots of questions, like how long the company has been in business, what type of training its employees have.
Sometimes these companies misleadingly advertise their services as a way to consolidate debt — or “debt consolidation,” — but make no bones about it, this is not a When you hire a debt settlement company you are hiring them to negotiate with your lenders on your behalf.
– Avoid companies that contact you rather than the other way around.
– Read — and understand — the fine print before you sign anything.
Their job is to negotiate a new, much lower amount for you to pay on the account.
In turn, you pay the debt settlement company a monthly payment and they pay your creditors, minus their commission or fee which they deduct from your payment.