Debt Settlement

Debt Settlement is a relatively new service being offered in the United States and it has become increasingly popular due to the current economic crisis. The service itself is different from other services with the same goal and so it is very easy for clients to be confused about such programs. Consumers should be fully aware of what this service is and what it isn't before enrolling.
Debt settlement is a program for those with financial hardship. If one does not struggle to pay their bills they should not typically enroll in such a program. This service is one which offers a compromise between one's current hardship and filing bankruptcy.
Monthly payments do not go directly to ones creditors. Payments only go towards two places, fees and escrow funds. The escrow funds are used to settle the accounts, typically in a lump sum, with the creditors. As it often takes months or even years for enough funds to accrue in escrow, some creditors do not see any money at all for a long time.
This service does not completely stop creditor calls. As creditors are not getting paid they are likely to call looking to collect money. There are steps settlement companies can take to avoid debt collector calls but the laws to stop creditor harassment typically only apply to collection agencies not creditors. If a person is preparing to enter a settlement program they should also prepare to deal with creditor calls. Note that creditor and collector calls to one's work place can typically be stopped in debt settlement.
Settlement quotes are an estimate only. There is truly no way to guarantee an exact quote for debt settlement as it varies depending on the creditors, the client's financial situation, and other factors. Therefore the initial quote and payoff time may be better or worse than estimated. In these cases the client would get the remaining funds returned to them or need to make additional payments respectively.