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Debt settlement presents a process where a debtor negotiates with the creditors so that he could reduce his overall debts and exchange them for a payment. The whole process started to evolve in America, back in the late 80s and early 90s when there was the big economic recession and most of the consumers had financial problems.  

How much would a debt settlement cost?
When it comes to the costs of the debt settlement, it usually depends on the service which is being performed for the client himself, and it differs from company to company.  The only advice which we could give at this part of the story is that you should watch out that the program of the debt settlement looks realistic, affordable and can fit in your monthly budget. Usually reputable companies will charge you a flat fee based on the whole percentage of the debt you have, but there is also the fact that you have to pay the whole fee up-front, without any of your problems solved at that point. Most debt settlement companies take a good percentage of the whole deal, which is perfectly normal.  Just keep in mind that if an offer is too good to be true, there is probably a big chance of fraud, so you should try to stay away of services which promise you a fast and cheap fix - they are probably not worth your time nor the money.

Debt settlement or debt consolidation
You need to distinguish debt consolidation and debt settlement. Debt consolidation can be done in two basic ways. You can take another loan for a longer period with smaller monthly payments and you can pay the old loan in the full amount. Another way is when you already have two or more loans and then you can consolidate them into one, which can be done by converting their monthly payments or decreasing them, depending on the duration. On the other hand, you might want to consider using debt settlement which means that you can hire debt settlement company that will receive your payments, and you will not pay anything to the creditor. In that way, you will force your creditor to reduce your debt, in order to get the money you owe. In the other hand, the creditor might agree on debt settlement which can reduce your debt. If you want to take that risk, it might pay off, but in order to get out of these situations, you need to change your money management.

What should a debt settlement company have?
If you are looking out for reputable Debt settlement companies, then the first thing which you should know is that a good company should be a part of the TASC and IAPD associations in order to provide you a good service. This does not mean that a company which is not in those associations will act as a fraud company, but it would help you in gaining more trust in them.

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