If you decide to hire a debt negotiation or debt settlement firm, the firm will ask you to close your credit card accounts. The settlement firm will not be able to settle your debts, if you continue using and paying on the account.
Generally, I advise you to make sure that any firm you choose is a member of the AFCC (American Fair Credit Council), the leading debt settlement industry trade group. AFCC members follow all the rules set down by the FTC, as well as a strict set of guidelines from the AFCC itself.
Credit card companies will not settle with debtors until the account is around six months delinquent, in general. This means that you must choose to stop paying your creditors each month in order for the settlement company to obtain a settlement. No credit card company will allow a cardholder to keep an account open after not paying for six months. Nor will a card company allow a user to continue to use an account after agreeing to accept a settlement amount to pay off the balance of the account. If you are interested in debt settlement, I encourage you to visit the Bills.com debt relief resources page.
I hope this information helps you Find. Learn. Save.
VIDEO: Debt Settlement - What is Debt Settlement?