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Do Debt Settlement Companies Actually Lower Debt?

Do those debt settlement companies really lower your debt and get it paid off in 3 to 5 years? Please help, I am not sleeping at night. - Jane, Rookwood

Generally we don't advise going to debt settlement companies. These companies may advise you to stop paying your debt immediately.

And this won't only continue to damage your credit report, but you'll still be accruing debt, late fees and interest with your creditor.

Plus, these debt settlement companies often have fees you'll be responsible for.

If you can't create a workable budget yourself or negotiate a payment plan with creditors, your best bet is to choose a legitimate credit counselling organization.

Many state attorneys general have toll free numbers where you can check out such organizations, or call your local Office of Fair Trading. You can also check out the National Credit Counselling Agency at nfcc.org. for US Citizens. Bad Credit Info.

 
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