Typical Cost Of Debt Settlement Companies

Debt settlement companies have quickly become a plausible answer for people who are in a financial bind and are considering bankruptcy. Most people feel as if they are literally drowning in debt and see absolutely no hope in sight. This is where the debt settlement company comes into play. The debt settlement company offers on your behalf to settle the debt that you owe for a fraction of the original debt. Of course, the debt settlement company would charge a fee for their negotiation service.

Debt Settlement Companies and Fees for Services

While many skeptics may see the role of the debt settlement company as a pure scam, others definitely see it as a godsend. The issues arise, of course, with the fee for service. Most of the time the services in which the debt settlement company provides are those that can be done by the debtor. However, if the debtor is not in the proper mindset to perform the necessary research for debt negotiation, then he or she will not be in a position for negotiation and will more than likely rely on the services provided by the debt settlement company. Nonetheless, the issue at hand is the typical fee for service charged by the debt settlement company.

It has been said time and again by many attorneys that fees associated with debt settlement companies can be a bit high to say the least.

  • Usually, the common practice in the debt settlement business is a percentage of the total debt, or a 25% of your total debt savings as well as both a sign-up fee plus monthly service fees. Sounds complicated doesn't it? Well it can be quite daunting when you consider how much debt you may have and begin to add up the fees.
  • There are other companies who have a preset monthly payment option available, but still, the cost can be staggering and since there is no industry standard then each debt settlement company has the ability to charge what they feel is necessary for their services.

Getting Help

As relative to the sliding fee scale, you may find that you can retain a debt settlement attorney for a fraction of what you would pay out to a debt settlement company over a certain time period. Not to mention that a debt settlement company's average success rate of settlement is not necessarily guaranteed. If you are considering hiring a debt settlement company to negotiate and/or settle your debt you might have a better chance of settling your debt with an experienced debt settlement attorney attorney.

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