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Debt settlement services may be a better solution than debt consolidation. A good debt settlement service might reduce the amount you owe from 40% to 60%. Of course there are fees involved and often the fee is a percentage of the savings or reduction. A good debt settlement service can still save you a substantial amount of money and help you get out of debt in a much shorter time. A good debt settlement service will provide the professional assistance you need.

The debt settlement company will set up an account at a bank (let’s call it an escrow account). You make payments to the debt settlement company which is deposited into the account. When enough money is accumulated in the account a professional representative of the debt settlement company will contact one or more of your creditors to negotiate a settlement. Usually the creditor will accept a certain percentage of what is owed to settle the account. The debt settlement company will take a percentage of the savings as its fee. Also, the debt settlement company will usually take a portion of the monthly payments into the escrow account as a monthly service charge.

This process continues until all of your unsecured debts have been settled. Throughout the process you stop making payments to your unsecured creditors. By the time the debt settlement company contacts them to negotiate a settlement they are more than happy to accept a reduced amount to settle the debt because they are afraid you are not going to pay otherwise. They are afraid you will go bankrupt or they'll need to sue to get paid and once they sue you will go bankrupt and they will get nothing or very little.

One of the keys to succeeding in this process is to do your home work up front and select a debt settlement company with a good track record and reputation for professionalism. Also you need to take the time to thoroughly understand the program, the fees involved and the length of time process will take. Generally, you should be able to settle all of your unsecured debt in three to five years depending on the amount of debt and the size payments you make each month. The monthly payments will usually be less than the total of all the payments you were making before beginning the program which should reduce the financial strain of having a lot of unsecured debt. A good debt settlement service will provide you with the professional assistance you need.

In a nutshell, by a thoroughly researching and then comparing several debt settlement agencies, you are able to select the service that meet your financial situation properly, moreover, besides the cheapest interest rate the market of debt consolidators is offering. For example, see our latest debt relief service review: Lower My Bills Review.

Nonetheless, it's advisable going with a trusted and reliable debt counselor before arrive to any conclusion, this way you save time because of seasoned advise and cash by obtaining the best results in a shorter period of time.

H. Milla runs the Best Debt Settlement Companies website – visit and see his best rated debt settlement company recommendation.

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Tags: debt management, debt relief, debt settlement, settling debts