Posted on July 13, 2009 at 9:20 pm I am considering debt settlement and I want to ask a fewq uestions before I take the plunge:Are there such things as legitimate debt settlement companies, or will all of these firms be merely after my money?How much do these legitimate debt settlement companies charge their clients?Are there Any accreditation agencies or regulatory bodies for these organizations? If yes, what are they?

Posted on July 14, 2009 at 1:06 am Yes, legitimate debt settlement exists. Not all companies are after their own personal interests. I understand that you're quite apprehensive abt the whole thing because news abt fraudulent companies is rampant, and you'd want to protect yourself and your family and you can't afford to lose any more money.From my understanding there are two payment schemes for the set-up fees that debt settlement companies utilize for their customers. I am not familiar with the second option, but as far as I know, debt settlement companies charge 15-25% of the customer's total debt amount.

Posted on July 14, 2009 at 2:09 am Right, and depending on the debt settlement company that you'll be working with, the set-up fee may be distributed for a specific time period, or throughout the program.Another way that you can check out a debt settlement company's legitimacy is its current standing with the Better Business Bureau (http://www.bbb.org). Consumers like yourself can search for the companies on their website and find out general information abt them, as well as any complaints filed against them. Even if a company is not a member of the BBB, you'll still be able to locate a record on the company in question. Although personally I would recommend that you work with a BBB-accredited company, preferably with one that has minimal to no complaints. Doing so would ensure that the company upholds fair business practice and you wouldn't have to worry about the company shortchanging you.

Posted on July 14, 2009 at 2:50 am Oh oh great. Thats good to hear. I thought I had to look it up at the FTC. All i see on that site are complaints. *grin*Another thing I also want to ask. How much can a legitimate debt settlement company hack off of my balance? Like I want a sure guarantee that the amount is, you know, healthy and realistic.

Posted on July 14, 2009 at 3:30 am Debt settlement companies may be able to settle for 40-60% of your total debt amount. If the company were legitimate, they would also provide you detailed paperwork on the matter, and provide you with a breakdown of their fee structure. Another accreditation company you should look out for is the TASC, or the Association of Debt Settlement Companies. The organization works with debt settlement companies to lobby for their rights and uphold standards in the industry.

Posted on July 14, 2009 at 3:58 am My apologies for the double post--TASC can be located at http://www.tascsite.org. The site is frequently updated and you can easily find their member listings on the website.

Posted on July 14, 2009 at 10:02 am Mr. Spock- since settlement requires negotiation- it is impossible (not to mention deceptive) for any debt settlement company to make guarantees on the percentage of what they may save you. You need to be aware that the settlement percentages achieved by debt settlement companies vary on the internal policies of the creditors you owe, how good the negotiators working on your behalf are and your ability to save sufficient funds for settlement while you are enrolled in the program.

Posted on July 14, 2009 at 10:04 am That is very true. So yes, legitimate debt settlement companies exist, but make sure you do your homework and always make sure you are getting honest, up front responses from the person you are speaking with.

Posted on July 15, 2009 at 2:26 am If the company that you wish to work with is legitimate, you may also need to ask them for sample debt negotiation letters that they send to creditors. You may also request that they send you samples of the fruits of their labor with different credit card companies. Most companies display that information on their websites, but it still is better to request for an actual copy from the representative you're working with, just to be on the safe side.

Posted on July 15, 2009 at 4:35 am It may also help if the debt settlement company that you'd want to work with sits down with you and educates you on how their program works, its effect on your credit, the advantages and disadvantages of debt settlement, etc. Just merely pushing to to sign up for them may be a little too scary for your own good.