Many debt settlement companies have been noted for being very effective in providing a useful service to consumers. There are, however, some provided companies that have advertised as debt settlement companies that have been disclosed as a scam. Many consumers have become skeptical due reports of such scams existing. That should not scare away consumers from the settlement option though.
There are many companies who are legitimate and highly effective in relieving consumers of debt frustrations. The best company maintain a staff of certified professionals who have reputations through the industry of being qualified in their fields. Consumers can always refer to the Better Business Bureau to examine the credentials of the settlement companies that they are considering.
The International Association of Professional Debt Arbitrators (IAPDA) is also a good source of reference when considering a settlement company to handle one's affairs. The IAPDA offers a list of certified professionals in the field of debt settlement. The United States Organization for Bankruptcy Alternatives (USOBA) and The Association of Settlement Companies (TASC) offer good insight on companies that are capable of handling debt consolidation issues.
The better established a company means that it will have a more well known reputation with the creditors with whatever the settlement company negotiates. Many of the true settlement companies are able to decrease debt for consumers by as much as fifty percent. They negotiate with creditors by offering them an alternative to the losses experienced through consumer bankruptcy and the significant losses of revenue experienced by selling accounts to collection agencies. The creditors will also receive tax breaks by forgiving consumer debt.
With such incentives, settlement companies are able to greatly reduce the debt that consumers owe significantly. Due to such positive results, settlement should always be considered as an alternative prior to the declaration of bankruptcy.
By the way, by researching and comparing the best debt settlement services in the market, you will be able to determine the one that meets your specific financial situation. Nonetheless, it is advisable to go with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned adviser advice and money by getting better results in a shorter span of time.