Consumers in financial distress are often focused on one thing- relief. After all, the mailbox is full of collection letters, and the answering machine is filled with calls from those you owe. Money is tight and it seems as though there's no way out. When you are at your lowest, you hear a commercial that says you can be debt free in a matter of months. The offer that sounds so tempting may be from a debt settlement company. Is it too good to be true, or a real way out?

The National Foundation for Credit Counseling (NFCC) suggests that consumers consider the following and ask the right questions when considering using a debt settlement company:

What is debt settlement?

If I don't have the money to repay my debts, where does the money come from for the settlement?

How is settlement reported on my credit report?

What happens to my credit score?

What are the fees charged by debt settlement companies?

How soon will the settlement company begin making payments to my creditors?

Am I responsible for any part of the forgiven debt?

At a minimum, consumers considering using a debt settlement company would be wise to:

Review the company's record with the Better Business Bureau as well as their state Attorney General or Commissioner of Banking.

Confirm that your debt settlement account is FDIC-insured.

Obtain all disclosures in writing, including a good faith estimate of costs and fees associated with the debt settlement program.

Inquire about your right to cancel the program and to receive refunds of any money on deposit should you wish to drop out of the program.

Be cautious about promises or guarantees that are not in writing or that seem unrealistic.

In most cases, consumers who think debt settlement may be the right answer to their situation should be aware that they can work directly with their creditor to arrange a settlement. A recent Consumer Reports article stated, "Chase Card Services spokeswoman Tanya Madison says Chase will negotiate with some debt-settlement companies at a cardholder's request but will not offer more favorable terms than the customer would receive by negotiating directly with the bank. People needing help can find a nonprofit credit counselor through the National Foundation for Credit Counseling (www.debtadvice.org). Those counselors will divide a set monthly payment among creditors to pay off the balance in full over time at reduced interest rates."

The NFCC stands ready to help any consumer struggling to repay debt. Trained and certified counselors can help you evaluate the debt resolution option that is right for you. Your road to financial freedom can start today.