Top 10 questions you should ask your debt settlement company:

• Do they have a physical address?  If not, or if they just have a P.O. Box, be wary of working with them; you’ll want to be certain you are dealing with an established company. 
• How long does their program last?  If your mortgage is not included in the settlement, you may run into trouble with your creditors when the program lasts longer than 36 months, so keep it shorter than that.
• Do their debt consultants work for them?  Some companies sell your information to other services rather than use it themselves, so be sure that you know where your information is going.
• What debts do they handle?  Do they handle major credit cards, store credit cards, unsecured bank loans, dental bills, law suits, medical bills, unsecured lines of credit, liens, and judgments?
• Do they accept credit card payments?  If they do, this is a bad sign.  A company that is supposedly going to settle your credit card debt should not accept payment with credit cards.   Rather, payments should be taken out of the predetermined monthly draft. 
• What are the up-front fees?  They should not be greater than 6% of your total debt and they should not ask for all the money up-front.  If they do, they have no incentive to continue to work in your best interests.
• Do they ask the right questions at the right time?  They should know about your bank accounts, including the account numbers and balances, and a full budget disclosure when you join their program.  Without this information, creditors will not be willing to negotiate and the debt settlement company will be ineffective in settling your debt.
• Do they charge various separate fees?  For example, you shouldn’t get charged for having information or a contract mailed to you.  All services should be included in the monthly fee.
• Do they make financial educational resources available to you?  Are they interested in helping you make smart decisions in the future or just help you with your current debt?
• Are there any required ‘voluntary’ fees?  No company is going to settle your debt for free, so any fees that are labeled as voluntary are probably required.