When it comes to debt relief, many people believe that the only viable option is credit counselling or bankruptcy. What many are unaware of is the little known debt settlement process.  Debt settlement aims to come to a mutually acceptable settlement they owe you and to save as much money as possible during the process.

About ten years ago, when credit card counselling began receiving negative comments from the media, the public assigned debt settlement companies to this category of credit counselling and debt consolidation agencies.

In a debt management program, you must make an involuntary donation for the services provided each month. The monthly payment to the creditors will be debited from your account and electronically transferred into the creditors account. This is different when debts are settled.

Debt involves risks, as well as credit card advice. As a consumer, you should be informed about how the debt works and what is required of you in the program.

What debt settlement companies say is important.

1. When registering for a debt settlement program, make sure you have the contact information of the company you are dealing with.
2. Only work with debt management companies that allow you to verify your savings account while participating in the program.
3. An attack plan is always the best. Make sure your debt settlement company has provided you with monthly payments and program fees.
4. You must verify if the service provider has successfully worked with the creditor previously. You can have examples of billing letters that you can see. A debt settlement company does not try to interfere or manipulate the mannerism in which the crediting institution works, but existing conditions are always a good sign.
5. Lenders do not settle for generosity and the process can take some time. Many factors, such as your financial difficulty, solvency, age, and balance, and your available savings in debt settlement are included in the settlement process.
6. The compensation of debt settlement companies includes a fee, which are generally part of the total debt of the program. Keep in mind that by including program fees in most debt relief programs, you only pay 50% of the amount you owe when registering.
7. Contacting creditors is strategic coordination to ensure that your creditors receive notifications at the right time for the client.
8. You, as a client, have decided that this is your only option, except bankruptcy or just ignore your creditors. You must make this decision yourself, and participating in a debt settlement program can improve your situation. While it may be a good idea to sacrifice your credit cards, the program also negatively affects your balance while participating in the program.
9. Debts that are regulated may have tax consequences for solvent persons or with assets that exceed debts. For more information, contact a tax attorney or visit the IRS website on Form 982.
10. There are many law firms, which provide debt settlement services. Private debt settlement companies generally offer better billing rates and fee structures just because they do not have an expensive law firm.
11. As a customer, you always have the right to submit your concerns and comments to the administration of your debt management company. There are several   companies, which offer a quality control complaint form.