Posted on June 1, 2009 at 4:24 am I want to know my options. I am planning to settle my debts and I want to choose from the bests out there. Thank you in advance.

Posted on June 1, 2009 at 4:35 am I believe that the BBB or the Better Business Bureau would have a list of accredited debt settlement companies that you could choose from. I am not sure if there is a group out there that ranks or surveys the best debt settlement companies in the country or even per state.

Posted on June 1, 2009 at 4:46 am I also see debt management companies, debt relief companies, and debt consolidation companies..are they different from debt settlement companies?

Posted on June 1, 2009 at 5:08 am They are only the same in terms of being the alternative solutions to bankruptcy.Debt Management pertains to the program by credit counseling agencies. It is also known as DMP (Debt Management Program) - the goal of which to lower the interest charges on your cards so you could concentrate on paying off your principal debt. The desired end is for you to pay off your debts in 5-7 years.The credit counseling agency consolidates (debt consolidation) the payment for your different creditors so they'd be the ones to distribute them to each creditor on a scheduled repayment plan. What they do is write the creditors a proposal regarding the payment arrangement. Most are non-profit but some charge a set up fee and a small monthly fee.Debt Settlement companies can reduce your debt by negotiating your balances down in a period of 18-36 months. Although your debts will go on default which may harm your credit score. They would charge you 15% of your total debt in most cases.There is a form that you can fill out on top of this thread if you want to get a more in depth assessment of your financial situation. They can recommend a good debt settlement company for you and don't worry it won't cost you, consultation is free.The best of luck to you.

Posted on June 1, 2009 at 9:24 am You can also look on The Association of Settlement Companies (TASC) website which is www.tascsite.org to find a reputable company. TASC, according to their homepage, "(TASC's) goals are to promote good practice in the debt settlement industry, protect the interests of consumer debtors, and lobby on behalf of debt settlement companies on the federal and state level."

Posted on June 2, 2009 at 1:53 am Well thank you all for the replies, I truly appreciate this, I just wish I could help my daughter not to be in the same situation as I am. Retired and in debt. She's planning to tap into her 401(k) to pay for her son's college education.

Posted on June 2, 2009 at 2:42 am It is a valid enough reason to borrow from the 401(k) only-- she would have to pay her income tax on the borrowed amount and once she's paid back what she owes, she then would have to pay her income tax again--same amount. Another way to discourage her from tapping into it is the possibility of (heaven forbids) her losing her job midway through repayment. You may advice her to first consider applying for a student loan.

Posted on June 2, 2009 at 6:39 am TASC is a good place to start, but the last I heard there are 300 or so members, so you'll have to narrow it down.  I'd choose a company that is a member of TASC and has very few BBB complaints. 

Posted on June 12, 2009 at 7:17 am Also, you can certainly shorten the time you search for a good debt settlement company by filling out a form on DestroyDebt.Com to get matched up with a qualified provider. This consultation is free!