Yes. You can do it on your own but companies can usually get larger settlements. You on your own are doing one...where as if they have 10 different people with a card from abc bank, totaling 100,000 in balances, they offer 40,000...a bank usually will not say no to that much. You on your own...are doing a much smaller balance and therefore really have no negotiating power. I work for a company that does this and depending on your credit can save you a ton. If you are though, I would not recommend it. If your credit is already showing late fees, 90 days behind, etc. Then go for it. Your debt to income ratio will drop drastically.
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Of course.
Before applying debt consolidation or debt management , i would like to look companies trustworthiness.