Debt settlement is a good remedy to eliminate your debts, but not everyone is qualified to avail of this option.  This is actually a better debt solution than filing for bankruptcy, but if you want to give it a try, you have to avoid the five things in order for you not to get caught in a bigger and more serious financial problem, and they are as follows:

1.    Debt settlement companies with exorbitant fees.  You have to watch out for debt settlement companies that collect excessive fees for their services.  A good company usually base their fees on the total amount of the debts of their clients.  For you to land on a good debt settlement company, you have to really do first some research.

2.    Not jotting down debt settlement conversations.   There will be times when you have to communicate with your creditors through phone.  For you to be sure that everything that will be agreed upon will be followed, you have to write down every single detail.  After which, make a copy and send it to whomever you talked to.  This way, your creditors will know that you are serious with debt negotiation.

3.    Settling your fees before signing a contract. Many people tend to forget that they should sign a contract first before paying anything to a debt settlement company.  This is a risky move as the company may not fulfil its promises and that the results may be unsatisfying.  Do not rely on verbal agreements alone.  It is important to put all your agreements into writing and make sure you review them thoroughly before signing it and before making a payment.

4.    Approaching a non-trustworthy debt settlement company. Before choosing a settlement company and if you’re going to do the settlement on your own, you first have to check its records with the Better Business Bureau just to make sure that you’ll be dealing with a trustworthy company that can help you resolve your debt problems.

5.    Immediately agreeing on proposals. Agreeing on proposals so quickly will give your creditors an impression that you are willing to pay any amount.  As much as possible, take your time in making decisions and do not always say yes to every proposal they lay down in front of you.  If you want to know how you can possibly get a good debt settlement deal, you may join forums or discussion groups and get inputs on what you should do.