If a company offers debt management, be wary

With so many Americans in dire financial straits these days, it's no wonder that advertisers of "settle your debt" services for debt management have found an eager audience. These companies promise to slash your debt by thousands, even tens of thousands of dollars. But is it too good to be true?

"In my opinion, it's a questionable industry overall," Linda Sherry, director of national priorities for watchdog group Consumer Action, told WalletPop via e-mail. "Why should any company be allowed to take its fees before the promised service has been delivered or accomplished?"