What fees are associated with debt settlement?

In Pennsylvania, debt settlement law dictates the various fees that are associated with debt settlement. Generally, debt settlement companies charge an upfront fee of between 12-15% of the total debt for their services. In addition, most companies will charge a monthly maintenance fee that can range from $25 - $45 per month. This fee helps cover the costs of working on the debt settlement process, such as communication with creditors and mediating payment plans. Finally, the debt settlement company may charge a success fee, which is a fee that is due when a debt settlement agreement is reached and payments begin to be made. This fee is usually around 15-25% of the total debt settled, and is due after the debt has been paid in full. When entering a debt settlement agreement, it is important to understand the exact fees that will be paid to the company, and be sure that they are reasonable. Consumers should always ask what the total cost of the debt settlement service will be, including all upfront, monthly, and success fees.

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What fees are associated with debt settlement?

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