Debt Settlement Companies: The New Rules That May Keep Them Honest

Debt settlement companies can be very useful tools when it comes to reining in an out-of-control debt spiral. Unfortunately, a number of individuals, some criminal and unethical, others just inept and inefficient, have set up companies that end up making a consumer's debt problems worse rather than better. In this series, WalletPop takes a look at the debt settlement industry, explaining how it works and talking to some of its players. This is the second installment in our debt settlement series.

If you're thinking of working with a debt settlement company to help you reduce the amount of money you owe on credit cards or some other unsecured debt, you should be aware of the new rules instituted this year by the Federal Trade Commission that should, if all goes well, keep consumers from being ripped off.