Debt settlement companies have a mixed reputation, and quite understandably so.   While many are honest and reliable, others are less so, and these few rotten apples have caused some people a lot of problems, and tarnished the reputation of the industry in general.   So if you are in a position where you are considering using a debt settlement company, you will clearly be anxious to find the most reliable ones. This article is intended to equip you with the information you require to go out and find the best debt settlement companies and avoid the less reputable ones that cause all the problems.   One of the most useful things you can do to begin with is ensure that you are familiar with the process, so that you have a good understanding of what it is you will be asking a settlement company to do for you.   To begin with, we will therefore look at what this process actually involves.   It is worth pointing out that debt settlement is a solution that is widely used in the US, but the equivalent to it in the UK is known as an IVA, which achieves the same result. It is important to understand that debt settlement companies offer a very specific service, which is different to debt management or consolidation.   While all of these processes result in you having just one monthly payment to worry about, it is only through the settlement approach that you will actually reduce the amount of overall debt that you owe.   This is because it involves negotiating with all your creditors to agree new settlement terms, which usually means a lump sum payment in exchange for a substantial reduction in the amount of the debt.   This often means writing off over half of your debts.   The process is also known as debt negotiation. It sounds easy when you say it like that, but if you have ever tried to negotiate with creditors yourself, you will know that it isn’t.   A lot depends on understanding how creditors work and knowing when to strike a deal to get the maximum reduction possible.   The most reliable debt settlement companies will be well established and already have relationships with hundreds of the most common creditors.   This makes coming to an agreement that much easier. When you sign up with a reliable debt negotiation company and they start the negotiation process, you will normally stop paying your creditors and start making payments instead into a separate bank account.   The negotiations can take from days to years, depending on the creditors and other circumstances.   While this is taking place your money is being saved up and is then used to pay off each creditor as the settlement is agreed. That is the process that will be followed if you use one of the reliable debt settlement companies.   When this way of tackling debt goes wrong, it is because less reputable companies take large fees for their services, and fail to deliver on the settlements.   This is little short of a scam and just leaves you in a worse situation that you were before. The best starting point is to follow recommendations for reputable companies, and never just approach one organisation.   You need to apply to at least two so that you can compare their proposals, as these can vary considerably, even with the most reliable debt settlement companies.