There are a few advantages and lots of pitfalls in using debt settlement services. With consumers on the ragged edge of financial disaster, and banks own gambling (lending) practices being shown the light of day, debt settlement services companies, like Debt Settlement USA are in the news.

The premise of the settlement companies seems like a no brainer. They'll take on the negotiations for you with your creditors and help you get out of debt sooner. The idea is appealing to many people. The actions debt settlement companies take are NO different than ones you can do yourself in time. Working with your creditors to get them paid off works, no matter whether its a company like Debt Settlement USA, or you. The biggest issue many people have with debt settlement is the high upfront costs.

Those up front costs can be as high as 10% of the amount you owe. Plus that expense comes up front, before you start getting the debt relief you were promised. There are conflicting stories in regard to debt settlement services. The industry trade group Association of Settlement Companies says 40 to 55 percent of consumers are able to complete their repayment plans and relieve themselves from debt. It blames a lack of discipline on the part of consumers for that apparent high failure rate.

If you want to see a REAL rate of failure, you need look no further than a 2004 Federal Trade Commission case in West Virginia. Results that were entered as part of the court records, suggest only 2% of consumers who enter into contracts with debt settlement services, actually complete the plans. Companies involved in the West Virginia suit have since refunded money to consumers and stopped doing business in the state.

If you find yourself in trouble with debt, take these steps first.

• Contact your creditor and ask for adjustments. Debt settlement companies do not get better deal with creditors than you can.
• Non-profit credit counseling can help. I've included a couple of links.
• Look for ways to pay more than the minimum payments. Minimums will always leave you in the hole.

If you still feel the need to have someone else do the negotiating for you, approach debt settlement services with companies like Debt Settlement USA with extreme caution. Do your homework. Understand the fees you need to pay, and what will happen each step of the way. Ask for customer references. Above all, take charge of your financial situation. Getting out of debt is the first step to say you fixed your credit. Don't delegate the responsibility for it to someone else, no matter what you paid.