There is NO guarantee. Settlement companies cannot always convince the credit card companies to settle.
Don't hand over money upfront. As of October 27, 2010, debt settlement companies cannot charge or collect a fee from you until your debt is settled or reduced.
Make sure you do your research. You don't want to do business with a company that's best known for its customer complaints. You are giving them money that could ultimately go toward your debt, so you should be satisfied with the services. Before you agree to anything, make sure you know:
- Fees and Terms
- How long before a settlement offer is made to each creditor
- How much you need to save before they will make a settlement offer to each creditor
- Possible consequences, should the settlement company ask you to stop making payments to your creditors