The debt settlement (debt negotiation) industry has changed a lot in the past few years. As a result, there is a lot of information about debt settlement that is completely false.
For example, I just read an article that says all debt settlement companies charge hundreds of dollars for a "admin fee" and a "service fee" every month. True? No, not always. You see, there are many debt settlement companies whose fees are set up this way, but it would be very careless to say that "all" debt settlement companies are the same. There are a few companies that don't charge an administration fee or a monthly service fee, which is good news. Even if you don't believe it, there are real companies that take pride in their customer service and doing what's best for their clients instead of running a scam to steal their money.
Also, there seems to be a common misconception that all debt settlement companies set up trust accounts where their clients have to put money every month so that the debt settlement company can take out their fees before the money is given to the client's creditors to settle their debts. Again, some debt settlement companies work this way, but most don't. In fact, there are a few debt settlement companies that work on a contingency basis and don't ask for their fees until their clients' creditors have agreed to a settlement. These same companies rarely ask you to set up a trust account. Instead, they prefer that you put money aside each month so that you can make settlement offers to your creditors in the future. Many people who want to settle their debts don't have enough money each month to put money aside. Instead, they have to take out a 401K loan, a home equity loan, or a personal loan from a family member.
As you can see, people who criticise debt settlement are often wrong. They should probably talk about something else, or at least do enough research before reporting on debt negotiation firms.
Debt settlement is not a painless process, and it's not for everyone. However, it has helped people and businesses save thousands of dollars that they would have lost if they had to file for bankruptcy. Visit http://donaldsonwilliams.com/Debt Settlement.html to learn more about debt settlement, including the pros, cons, and facts.
