How do debt settlement companies work?
Debt settlement companies will ask you for all your bills. You then agree to pay a certain amount into a debt repayment account every month.
Debt settlement companies often focus on paying one bill at a time. They pay a bill only when there is enough money in your debt repayment account. Then they wait again until there is enough in the account to pay the next bill. They do not always ask you which bill you think should be repaid first.
Debt settlement companies might not contact all your creditors to let them know you are trying to pay your debts. These creditors might keep contacting you or hire collection agencies to collect what you owe them.
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