Never use a debt settlement company.
I panicked with my debt and used a credit card debt settlement company. They have done their job, they are legit and my debts left with them were paid (I eventually withdrew two accounts from them and settled them on my own) but it was far more costly to me both in terms of money spent and damage to my credit. Yeah, they saved me 25%-50% on each debt amount in raw terms, but they also collected heavy fees before they would even begin to collect money for settling the debts, plus they collected a heavy fee from each check sent to them, PLUS they collected from me once they settled each debt. THEN I got the tax forms from the creditors since settled debt is considered income, and is taxed like a bonus — 40% or so. Plus because it took so long and the settlement company strategy is to simple stop making contact with the creditors once they send a single letter stating my intent to settle, that I had a judgment against me (luckily in my state, wages can’t be garnished). I withdrew that account and settled on my own, under fair terms. I’m about to pay that debt off, though I’m still going to get slammed at tax time.
