What are some companies that offer free debt settlement services?

A 2010 law required debt settlement companies to stop charging upfront fees to consumers, but no debt settlement services are free, because the fees are retained from any settlement, reports The Simple Dollar.

The Federal Trade Commission cautions consumers about the risks of using a debt settlement company, which often involve depositing your money into a bank account administered by an third party, and the fact that it may have negative effects on your credit. The FTC recommends trying alternatives such as negotiating with creditors directly or working with a reputable nonprofit consumer credit counseling agency. The U. S. Department of Justice Trustee program maintains a list of approved credit counseling and debtor education providers.