1. For Debt settlement don't do business with a company that requests to hold your money in escrow. If you do it, you will loose control of your settlement money.
2. Hire a settlement company that has experienced and licensed arbitrators.
3. If the debt settlement company charges you a fee for late payment fees and interest charges then Request the fees to be based upon original balance not the current.
4. If you don't make the required monthly payments then you will be breaking the rules and most likely be reported to consumer reporting agencies as a delinquent customer. Don't miss out on these payments during debt settlement.

5. Most debt settlement companies don't tell about
   their fee structures which can cause problems later on. Check out for any
   hidden fees. On the average the debt settlement companies charge 8- 15 % of
   the total debt.

6. If the creditor agrees to settle for full then you must get your status changed to '"satisfied in full"' or some similar phrase.

Debt Settlement Tips for those who want to deal with creditors themselves

Once you have made up your mind that debt settlement is the path for you to
choose, you will either seek professional help from a settlement agency or will
do it by yourself. For people who don't get intimated, self help will be better
solution but for those who are unable to handle all the work load, numerous
settlement companies are present in the market to help them.



After your decision to adopt self-help approach then below are some guidelines
that will help in your debt settlement plan.

1. Make sure that a plan for earning money is present to start the settlement
   program and make a separate debt settlement account for these funds.

2. When you settle the amount with the creditor, don't send any money to them until the contract is engraved in writing.
3. When you pay the debt settlement funds to the creditors, you must follow up inorder
   to get a zero balance letter from your lender so the collection company doesn't
   bother you again.

4. Always use privacy managers on your phones and speak with your creditors only when you are ready for it.
5. Don't accept any debt settlement deal which can cause you any future problems.