After you sign up with a debt settlement company, the company contacts your creditors and informs them that they are your representative from then on. This has happened in the past so the government has since provided aid to those who qualify. Dont rely on someone for the same, because I got the same problem in my past. Unemployment has caused an increase in the requirement for credit card payday loan companies california reduction services. If set up properly, a good debt counseling program will do the following: 277, 457 Self Improvement Resources When it comes to seeking debt relief, many Americans feel the only viable option they have is credit counseling or filing bankruptcy. Your monthly debt decreases if the program that you cover your debt consolidation payments over a long period of time. We remove bankruptcy, judgments, collections, repossessions, unpaid debts, slow pays, debt consolidation entries, tax liens, charge-offs all types. All these fees will put you further in the hole. From there, they will set up a plan and send proposals to each of your creditors. The applicant has to choose a qualified service provider that works with trustee in bankruptcy or a trustee to file the proposal and come to agreement with the lenders. When you are dealing with creditors, you will need to keep very good records.