The credit card debt settlement industry has become a monumental one. With millions of people who struggle every month to pay their bills, a debt settlement company can be appealing to almost anyone.

Unfortunately, for every one legitimate company out there, there are hundreds that are only out for your money. Here are a few things to look for when it comes to choosing a company that won’t run to the bank with your cash and leave you hanging.

Beware of Promises

Hector Milla Editor of the “Get Rid Of Credit Card Debt” website — http://www.GetRidOfCreditCardDebts.net — pointed out;

“…If you run across a settlement company that guarantees you will be free from debt in 6 months, be very weary. This sounds great, but when you break it down it doesn’t make sense. For example, if you are $10,000 in debt, and the settlement company is able to reduce the debt by 50%, that still leaves $5000 for you to pay back. To do this in just 6 months you would need to pay over $800 a month to your creditors. Chances are, if you have that much money each month to sink in to bills you wouldn’t need to settle your debt. Realistically it can take 2 years or more to clear your debt…”

Beware of Fees

It’s pretty standard in the industry to collect anywhere from 10-15% if the debt in fees. The tricky part of this, it’s not the debt they’ve managed to settle. The fee is based on the total amount of debt they are negotiating. Even if the agency is able to get that $10,000 debt down to $5000, you will still pay the agency the 15% fee based on the $10,000. That’s $1500 in fees that you must pay that your creditors will never see. While all of these companies charge fees, you’d be doing yourself a disservice by not finding one with low fees.

Beware of Non-Communication

“…Basically a debt settlement works by having you save up money to make a lump sum payment to your creditors. A creditor is more likely to accept a settlement if you have at least 40-50% of the original debt available to pay them. The credit card debt settlement company will set up a savings account for you, and money is automatically deducted from your personal checking to plop in to this account. While you are saving money for the pay-off, your creditors aren’t going to go away. A reputable company will work with your creditors. This will help stave off the phone calls, and worse, the wage garnishments. If a company isn’t willing to work with your creditors, you should run away…” H. Milla added.

Further information about trusted and reputable companies for credit card debt settlement by visiting; http://www.GetRidOfCreditCardDebts.net

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