• Debt consolidation
• Debt management
• Relief from collection abuse
• Consumer bankruptcy

It is a legal bill repayment method that helps consumers pay less than they owe. This program saves creditors time and money because they don't have to go through the complex legal process of bankruptcy. Consumers save a lot of money as well, since they don't have to pay back the full debt.

• When you have credit card debt, payday loans, collection accounts, medical bills, etc.
• When creditors are threatening to file lawsuits against you.
• When you want your creditors to accept less than what you owe.

A good debt settlement attorney has years of experience settling debt. They have the training, knowledge, and expertise to understand the ins and outs of debt negotiation. A skilled attorney can apply that knowledge and experience to your specific situation.

And that's just the tip of the iceberg.

Here are a few other reasons to consult a lawyer to help you settle your debt:

• You won't have to deal with collection calls. The collectors will be required to work with your attorney.
• Attorneys know what creditors can and can't do. They know how to negotiate with creditors to settle your debt in the most challenging situations.
• They know the latest FTC rules by heart, including some you might not know even exist.
• Attorneys are trained negotiators. They are very likely to save more for you than you can save for yourself.
• They know how to negotiate a settlement with credit card companies even if they file a lawsuit against you.
• They can safeguard you from collection harassment and online debt settlement scams.
• If collection agencies try to scam you, an attorney can file a complaint with the state attorney general.
• An attorney will give you the best debt settlement advice.

When you're looking for debt negotiation services, you should become familiar with the relevant laws to avoid getting scammed. The Telemarketing Sales Rule was introduced in 2010 to safeguard the interests of consumers and prevent debt settlement companies from using fraudulent activities. Here are a few important laws that everyone should know:

1. Upfront fees: Debt settlement companies are not allowed to charge you an upfront fee. They can charge you a fee only after they have settled the debt. To do that, they must submit the complete settlement program to you and also give you proof that the initial payment was made to the creditor.
2. Disclosure: The debt settlement company is required to explain the entire program upfront. They need to inform you when you can expect the debt resolution process to be complete. In addition, they are required to disclose the following facts to you:
   1. The total cost of maintaining the dedicated account and the program.
   2. The effect the debt resolution activity is likely to have on your credit score.
3. Misrepresentation: The Federal Trade Commission prohibits the misrepresentation of facts regarding debt settlement services. Debt settlement companies and their representatives may not make false promises and must clearly explain the services they offer. They are required to reveal their success rate correctly.
4. Dedicated account: According to debt settlement laws, a settlement company needs to meet the following conditions when setting up the dedicated account:
   1. They must open an FDIC-insured bank account dedicated to the use of your funds.
   2. They must provide you with complete ownership of the account.
   3. You must be able to withdraw money from the account anytime without paying a penalty.
   4. They can't have a referral fee agreement with the bank maintaining the dedicated account.

Settling with debt collectors is not an easy task. You have to be smart, determined, and knowledgeable to deal with them effectively. Specifically, that means you have to:

• Understand the Fair Debt Collections Practices Act (FDCPA) first. This is a consumer protection amendment to the Consumer Credit Protection Act.
• Check if the statute of limitations has expired. Collection agencies can't sue you for the debts after a certain period, depending on your state and the kind of debt you owe. If the statute of limitations has expired, you may not need to pay them a dime.
• Ask the debt collection agency to send you a debt validation letter via certified mail. The letter will lay out the terms of the loan, how much you owe, and the basis of their claim to the debt. It is possible that they don't legally own the debt they're asking you to pay. If this is the case, you don't have an obligation to pay them at all.

The best debt settlement program can help you save a huge amount of money. It can help you save big on the outstanding balance, penalties, and late fees of your debt. If your accounts are more than 180 days past due, collection agencies may agree to cut down the outstanding balance by a big percentage since they are not getting money, anyway.

Whether you opt for DIY debt settlement or get help from professionals, this debt resolution helps you save money. However, your credit score is likely to drop by a few points after your debt is settled. The drop is marginal because your credit score is likely already low due to delinquent accounts.

When you stop making payments to a credit card company, your credit score drops significantly. When you miss payments on your accounts, lenders take that as a sign that you are not a responsible borrower - whether that's true or not - and take action accordingly.

You also have to pay tax to the Internal Revenue Service (IRS) when a credit card company agrees to reduce your debt amount by more than $600. So, you may have to set aside money for taxes after settling a credit card.