Don’t pay for something that you can do for yourself. Settling with creditors works best if you have a lump sum of money to offer the creditors. do not send money until you have the settlement offer in writing then send your payment certified mail and get a copy of the check after it has cleared. Keep these documents for at least seven years. Check your credit report to make sure the debt is shown as a zero balance.

Debt Settlers Offer Promises but Little Help
By DAVID STREITFELD
Debt settlement companies claim they help both creditor and consumer by bridging the abyss between them, but the firms often manage to please no one.

http://www.nytimes.com/2009/04/20/business/20settle.html?emc=eta1