I am seeing a lot of advertising about debt settlement for people with credit card debt over $10,000. They make it appear that the 2008 Federal Stimulus Package has provisions that allow people to negotiate a credit card debt over $10,000 to a lower amount. It all seems fishy to me. I checked with a couple of companies about how they do it. They take money from you for four months that pays your fee while you cancel your credit card and do not make payments during the four month period. During this period they negotiate a lower amount to pay the company. Does this sound familiar to anyone?

Is there really anything in the stimulus package that helps people to lower their credit card debt? Are these debt settlement companies effective or just glorified scams? I am familiar with consumer credit counseling. I have only been aware of debt settlement that is being advertised for about a year. What is the scoop on these debt settlement companies?

Bigray in Ok