
How much do debt settlement companies charge?
As opposed to most industries, the service fees charged by debt settlement companies have a direct impact on the services they're offering.
For instance, when you hire someone to mow your lawn, the price they charge has no impact on their ability to complete the job. When you hire a debt settlement company, since your financial capacity is the key in respect to your success, the amount you pay in fees will immediately impact you.
The most critical thing for you to know is the more you pay in fees, the longer it will take you to settle your debts. And, the longer it takes you to settle your debts, the less likely it is that you will successfully do so.
Fees commonly charged by debt settlement companies
There are 2 different methods that debt settlement companies commonly employ when charging fees. They are...
- Debt settlement fees based on the amount of debt that you enroll
- Debt settlement fees based on the amount that you save

Fees that are based on the amount of debt that you enroll...
I'm personally not too crazy about this method of charging fees. It doesn't promote performance and the service fee is static, irrespective of the outcome.
This fee structure is usually the most expensive, generally 20-25% of the total debt that you enroll. This fee is usually almost triple what I charge.

Fees that are based on the amount that you save...
I'm a huge supporter of this fee model, as it is the one I use for my debt settlement program. When debt settlement fees are based on the amount that is saved, you have the comfort of knowing that your debt settlement fee will be linked with your success.
I charge 15% of what I save you if your total enrolled debt is less than $150,000.
I charge 12% of what I save you if your total enrolled debt is between $150,000 and $299,999.
I charge 10% of what I save you if your total enrolled debt is $300,000 or more.
The difference between my fee versus 20% of what you owe is very significant.
Take a look at precisely how large the difference in fees is...
My Debt Settlement Fee
15% of what you SAVE |
Typical Debt Settlement Fee
20% of what you OWE |
|
---|---|---|
Settle debts at 60% | $1,800 | $6,000 |
Settle debts at 50% | $2,250 | $6,000 |
Settle debts at 40% | $2,700 | $6,000 |
Settle debts at 30% | $3,150 | $6,000 |