Debt Settlement
 Consumer Credit Counseling 
 San Diego, California, Texas, 
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"I cannot begin to express my gratitude for saving me several court appearances, garnished wages, and about $30,000."
- Mike Barrett
You handled this debt in a fast and cheap way after years of bill collectors trying to make us feel guilty of something we didn't create.
- Cesar Gomez
Client settles $21,000 medical
debt on his credit card account.

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Debt settlement FAQ

Debt Settlement Company Warning Signs

Hiring a debt settlement company can be an effective solution to eliminate debt. However, in not considering the following WARNING SIGNS, choosing the wrong service can be hazardous to your financial health:

  1. Avoid a debt settlement company that charges excessive fees

    The debt settlement industry is often criticized for charging exorbitant fees. Most debt settlement companies charge a flat fee of 15% of the total enrolled debt. Others charge a fee between 2-5% of the total enrolled debt, plus on the backend, a debt negotiation fee of 25% on the amount saved. However, signing up with a service that charges lower fees is highly recommended. Making this smart choice can help you get out of debt much faster since more of your monthly payment will be applied to the savings of settlement funds instead of fees.

  2. Avoid a debt settlement company that does not have a money-back guarantee

    A debt settlement company that is confident about their services should offer a good refund policy. A minimum 30-DAY money-back guarantee is recommended.

  3. Avoid a debt settlement company that misrepresents the time it takes to be debt-free

    Some companies low-ball, or misquote time that a debtor may take to become debt-free. This happens because they quote monthly payments that don't estimate balance increases from the accrual of late fees and interest charges. For example, a $20,000 enrolled debt can continue to incur interest charges and late fees, causing the balance to increase to $22,000. But, if a potential balance increase isn't quoted in your monthly payment, it can cause you to spend more money and time to get out of debt than what you were originally estimated.

  4. Avoid a debt settlement company that guarantees an actual debt reduction

    It is illegal to promise or guarantee that a creditor will accept partial payment of a legitimate debt. Honest debt settlement companies never provide settlement guarantees. They give settlement estimates based on their track records. To measure a company's experience, ask to see proof of actual settlements that the company negotiated for clients.

  5. Avoid a debt settlement company that has received excessive customer complaints

    Don't do business with any company with a history of excessive or unresolved customer complaints. is an excellent online source to determine if a company has received service, advertising, selling misrepresentation, or refund complaints.

  6. Avoid a debt settlement company that controls your money

    No debt settlement company should be allowed to control your money. The Federal Trade Commission has sanctioned and shut down companies that have co-mingled and misused client funds. You should be able to establish your own savings account to have custody and control of your settlement funds.

  7. Avoid a debt settlement company that hides or omits the facts

    Informing you of the pros and cons of debt settlement is the only way to make a totally informed decision on using this debt management approach. Thus, you should find an honest company that works in the spirit of full disclosure and that will never take a dime from you unless they can effectively serve you.

  8. Avoid inexperienced debt settlement retailers

    The debt settlement industry has been cannibalized by inexperienced "retailers" that normally outsource debt negotiation services to third-party debt settlement service providers. However, this substandard service approach can lead to a higher frequency of customer complaints. Thus, ensure finding an experienced company with in-house professional negotiators.

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