1) Slow And Steady Wins The Race

Easy to get swept up in the excitement of settlement reduction, the momentum especially heightened among those borrowers formerly suffocating midst credit card debts bills and previously unawares that the debt settlement programs even existed, but you will need to keep a steady hand at the till when designing the budgetary predictions that shall, after all, be of paramount relevance to the culmination of any settlement plan. To a degree, the counselor working with your family should help point out recurring snags that most borrowers face – forgetting about the substantial jumps in utility payments around the colder seasons, for example – but the final responsibility will inevitably rest with the head of household most familiar with all of the hindrances toward consistent payments that tend to come up.

2) Make Certain You're The Only Client

It's become fairly well known that Consumer Credit Counseling companies regularly, as almost a tenet of their business plan, request fees from not only the debtors asking for help with their credit card bills but also the lenders themselves during the organization of a plan for compensation. Now that debt settlement programs have become increasingly viable (and have begun to slowly but surely eat away at the Consumer Credit Counseling companies' share of the debt relief market), some of the newer firms have begun to do the same. As you should automatically suspect, whenever the companies have two different masters, they'll have rather less motivation to craft the best possible settlement arrangement for the borrowers. Accordingly, you should be sure to force the issue during the initial consultation, and don't let the counselors weasel out of the question. The representatives of any forthright and upstanding debt settlement program will be more than happy to declare that their borrower clients would be the only source of corporate funding.

3) Remember That Debt Settlement Programs Are Only A Band-Aid

Even if you manage to qualify for one of the debt settlement programs – harder than one might think under the ever more stringent eligibility requirements regarding the disposable income following taxes and household deductions – and, more difficult yet, make your way through the program (which takes four or five years on average), a full compensation of all of your lenders hardly means that you should consider yourself out of the lion's den. Sad to say, a growing percentage of settlement customers, now that access to the programs have grown to encompass the whole of the American cultural and economic landscape, make their way to the end of the debt gauntlet only to turn around and slowly amass more unsecured burdens until they're in exactly the same problem as before they started working with the settlement firm.

Actually, to tell the truth, they'll be in a far more dire position, since their previous financial partnership with the settlement negotiation specialists will be dutifully recorded along with all other financial transactions upon the credit agency reports, and they'll subsequently find their chances for bankruptcy protection (and, accordingly, settlement agreements) all but extinguished as a result. Don't let the savings garnered through debt settlement programs go to your head nor spur easy and foolish use of whichever credit card accounts you attain following the remuneration of past bills. It's hard enough to budge lenders toward forgiveness of their rightfully owed claims the first time, but you'd best believe they'll hold on for dear life should you try again, no matter the cause.

Author's Bio: 

Cole Collins is a free lance writer in the field of personal finance with a concentration on consumer debt relief