debt settlement companies

New regulations will soon crack down on shady debt settlement companies. Until then, don't let desperation guide your decisions.

Plus: What to ask before signing on.

As more consumers struggle to pay off loans, debt-settlement companies promise quick fixes -- and some are scams. There are better ways you can help yourself.

Debt-settlement companies typically try to negotiate with credit card companies to reduce the amount you owe. Rising unemployment has led to a sharp increase in the number of consumers who are behind on their payments, creating a receptive audience for their services.

But like a weight-loss product that causes you to gain 10 pounds, some of these programs could leave you even deeper in debt.

New York State Attorney General Andrew Cuomo is launching an investigation into 14 debt settlement companies, which he calls a "rogue industry." Ashley Milne-Tyte reports.

Debt settlement companies claim they help both creditor and consumer by bridging the abyss between them, but the firms often manage to please no one.