I used to work for one, you can do it yourself, or let a company do it for you. The company takes the phone calls and settles the debt by holding the money you put up and getting your debtors to settle for less. The company usually has attorneys on staff or call. The problem is you have no control so you have to trust the company. Your credit score will go down at first and then as things get paid off it will go up. Nothing will get paid until you pay the company, we used to settle with the first company that would give us a good ratio on the debt. The advantage you just pay one amount.
Doing the same thing yourself means you have to get them to settle for less, and make certain you have a letter in hand agreeing to the amount and that they will take the delinquency off your credit report, show the debt as paid not settled. You have to take the phone calls, letters etc.

Debt settlement definitely works!!! As there are many companies out there that offer debt negotiation services, it is recommended that you do some research about the company that will be representing you. All companies have different ways of doing debt settlement and the process vary from company to company.

I know that settlements can be reached for the consumer to save about 50% – 70% of the overall debt and sometimes you can even save more. I think it is a lot more beneficial to you to let the companies that offer this service do it for you, as they can maximize the savings and they have the experience to do this kind of thing, they also know the paperwork involved and they will handle the creditors for you to take some stress off your shoulder.

Some Debt Settlement Companies will ask you to send them monthly funds, and some others let you have control of the funds by saving them yourself and so that you feel comfortable and you know where your money is at all times. These funds are the key to success in a debt settlement program, because the more you save, the faster the debt will be eliminated.

Here are some things to look for in a Debt Settlement Company:

* Better Business Bureau (BBB) rating.

* The Association of Settlement Companies (TASC)

* Proper Chamber of Commerce

* Charge for their Services

Commission based on the savings: It is an incentive and they will negotiate a lot harder since they earn more when they save you more.

Monthly Flat Fee: They already have your money so there is not a strong incentive to save you as much as possible

I hope this information has been of great help and just to help you simplify your search, I recommend you to check out CuraDebt, as far as I know, they are the best Debt Settlement Company out there and they meet all the requirements I mentioned above.

Good Luck!