Posted on September 3, 2009 at 11:51 pm Debt settlement reduces the consumer's debt amount to more or less half of its original amount. If the consumer owes his/her creditors $30,000 in total- an enrollment in a debt settlement program can cut that amount to more or less $15,000. It does sound too good to be true, doesn't it? - and you know what they say about things sounding too good to be true - it probably is. Is the debt settlement program legitimate? Are debt settlement companies legitimate? Share your thoughts.

Posted on September 3, 2009 at 11:57 pm Are debt settlement companies legitimate?There are many legitimate debt settlement companies- but not all debt settlement companies are legitimate. All good industries spawn bad seeds. It's important for consumers to know how to spot the legitimate company.

Posted on September 4, 2009 at 12:07 am "Is the debt settlement program legitimate? Are debt settlement companies legitimate"There is nothing wrong with the program but perhaps there are issues in its implementation. If the debt settlement company is not legitimate, meaning - it doesn't have the consumer's best interest at heart, then however legitimate the program is, if the settlement company is not, the consumer would not see the end of his/her debt.

Posted on September 4, 2009 at 12:40 am "It's important for consumers to know how to spot the legitimate company"I agree, so  here are some notes on what a legitimate debt settlement company is or what it must be, what it must have:-The settlement company's program must have a fast completion time (usually 12-36 months).That program must also help protect and improve the consumer's credit standing. -The settlement company must be a member of the Better Business Bureau ( for at least 5 years).-Must  have a good standing with the Chamber of Commerce.-Must be a member of TASC - The Association Of Settlement Companies, and the IAPDA or the International Association of Professional Debt Arbitrators.

Posted on September 4, 2009 at 1:10 am The legitimate debt settlement companies are in these websites:BBB www.bbb.orgTASC www.tascsite.orgUSOBA www.usoba.orgIAPDA www.iapda.org

Posted on September 4, 2009 at 1:19 am A legitimate debt settlement company usually would not have ads on TV, the internet, print ads...it would also not send you brochures, posters in your mail, if not by request.

Posted on September 4, 2009 at 1:59 am How much would a legitimate debt settlement company charge?

Posted on September 4, 2009 at 2:20 am Legitimate debt settlement companies will usually charge the consumer 15% of the total debt amount - spread out over 18 months, or  20-25% of the settlement amount.The consumer should ask the settlement company how these fee structures work.

Posted on September 4, 2009 at 3:04 am I agree with Stephanie, the fee structure is probably one of the reasons why some people think that debt settlement companies do not pay the creditors and instead pay themselves.About fee structures - If the company breaks fees down into a "retainer" fee and a "service fee." 1) Companies that uses the 15% of the total debt amount may charge the 5% (retainer fee) over the first few months--- and the 10% (service fee) over the next 15 months. In the first few months of the program, the consumers payments may not go to the first settlement, but instead to the settlement company's fees.Are debt settlement companies that employ this structure legitimate? I think so. The only time that this won't work is if the consumer stops the payments.