Green Bay, WI
A: I think what you are referring to are companies that promise to help you settle your debts for far less than you owe. Tread lightly here. Many of these companies are just scams. And those that aren't will charge you thousands of dollars--money that could go to pay down your debts.
I would suggest you go to the Web site for the National Foundation for Credit Counseling and get help from a nonprofit credit counseling agency. Once on the site, you can plug in your zip code and find an agency near you. If you need a debt management plan--one in which you would take three to five years to pay off your debt--you might pay a set-up fee of $50 or less and a monthly servicing fee between $25 to perhaps $40.
The credit counseling agency will try to get your creditors to cut you some breaks (in interest rate or penalty fees); however, nothing is guaranteed. You are among millions who are struggling with an overload of debt; so, many creditors these days are less likely to negotiate the way they might have in years past.
Nonetheless, I would stick with a nonprofit agency.Image may be NSFW.
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