The fee structures can differ depending on the debt relief solutions you use. Typically, fees are based on a percentage of the savings, which is usually approximately about 40%. For example, if you owe $10,000 and the debt settlement company works out a settlement of $4,000 and you save $6,000, you would owe 40% of $6,000 or $2,400, leaving you with a total savings of $3,600, a significant savings. Some debt negotiation companies will require a lump sum payment, which is not compliant with the new FTC laws. If they do, your best bet is to stay away and look for another debt settlement company.  Beware of debt relief companies that ask you for a payment up front (although they may ask for the savings plan money to be sent directly to them, which is usually acceptable).

 

A good debt settlement company should be able to offer you a program that save you even more than the example above. They can also build the fee into your monthly payment so that you will not even feel it while still saving a significant amount of money.