What is your opinion about the settlement company?

I have 2 huge accounts with Chase and Citi Card. The total debt amount is $47,000. I have tried to negotiate with them, but it didn’t work out. I have consulted a debt settlement company. I must say the people are pretty informative. The representatives told me that they can settle the debt within 3 months. They can reduce the debt amount by 85%. Really!!! That will be great!!! I need to only pay $2500 to them while joining the program. I am ready to pay this amount. They also told that my credit score will increase by 100 points. What are your suggestions?

5 Answers

And one more thought on my previous post, in addition to the research you just did, please also do a Google search on any company you're considering to be sure that they don't have any complaints against them. Even if they're not a BBB member, if there are complaints, these will appear on the BBB website.

I can't stress enough, though, that any company attempting to charge up front fees or monthly service fees is simply a rip-off, and you need to run as fast as you can.

Again, good luck!


Okay, listen, I work in the debt settlement industry, and first of all, this company charging you $2,500.00 up front is ILLEGAL. So, if they are willing to break the law, imagine what type of treatment you'll get. I'm so glad that you decided to look into this before you allowed yourself to be robbed of $2,500.00. If I were you, I would report this company to the FTC and the AG - ASAP.

Second, they are NOT going to get you an 85% reduction with Citibank and Chase. If you have the funds available to offer your creditors, there's no reason these accounts can't be settled within three months, based on the delinquency, but don't expect to settle at just 15% of the balance.

If you decide against doing this yourself, and want to hire a company, do NOT hire a company that charges any up front fees. And, if you find a company that charges you 30% of your savings, that's too much! You shouldn't pay more than 15%-20% of your savings - this makes it worth hiring a company. But if you end up paying more than you would have if you attempted settlement on your own, it's simply not worth it - unless you're completely intimidated by creditors and bill collectors.

Best of luck to you!

I think the settlement company is telling you a bunch of lies. I don't think it is possible this amount of debt within 3 months. Settlement can drop your score by as much as 125%. My suggestion will be to not work with the company. Plain and simple.

Check out the following page to know about the steps to settle debt yourself:


Thanks for the reply. I am lagging behind the payments for around 4 months. The last payment was made on May 2011. How can I settle debts myself?

Are your accounts current or charged off??  Personally I think they are handing you a load of BS.  Settlements cause your account to go DOWN not up.  And Citibank does NOT settle at 85% off...read the forums....a lot of people have trouble getting more than a 50% settlment. Chase is the easier one.

Settlements are easy to do yourself


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