Going for debt settlement is the best option for those who are burdened under high debts. In this, the settlement firms negotiate with your creditors and reduce your debts by 50-60%. This helps the debtor to get out of the debt faster. The settlement company negotiates on your behalf with the creditor for a set of agreement and the debtor pays less than what he owes.

But one needs to be cautious in selecting the right settlement company as well as the money to be spent on it. The debtor should be aware of the new FTC rules for the settlement firms. One needs to do proper research and he will not face any negative impact on his credit. Take your time and look for the best settlement firm. A good settlement firm is a member Association of Settlement Companies and offers a money back guarantee.

To save your money while getting out of debt, you need to take care that your interest rate is low and you are making the largest payment that you can afford. Consumer does not need to pay any upfront money to the settlement company for their services. The debtor needs to pay the money only after the negotiation is done completely.

The upfront fee should not exceed $ 50 and this amount the debtor needs to pay only after the settlement company has reduced at least one the debts you owe. The consumer should note that there is a written agreement and full money back guarantee is provided to him.

The total fees that you need to pay to the settlement firm should not exceed 15% of what you save under the settlement program. Basically the time of completion of your debt depends upon the amount of debt you owe but it should be taken care that the timeline should not exceed 2 years. In most of the cases, the completion period is less than that of a year. One needs to be sure that he pays off his monthly bills regularly. If you do not then you can be sued to collect the settlement amount. If a check is not done on this, the monthly fees will increase gradually and in all, the total fees will be outrageous.

There are some simple things that need to be taken care of when you are in debt. One should not use credit card at all. Cancel all of your registration that automatically charges your credit card. These few things will help you not to sink further in debt.