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Watch this clip above to find out whether debt settlement companies are able to hold their promises of settling their clients’ credit card debt with the creditors at the lowest possible amount.

Here’s how debt settlement companies prey on desperate credit card creditors:

Debt relief companies often tell their clients to stop paying their bills. Instead, the customer is instructed to pay a certain amount each month into a separate bank account set up by the company. They promise that once there’s enough money in the account, they will negotiate “lump sum” settlements with creditors. During this time, of course, the interest charges and penalty fees keep piling up on those unpaid accounts.

Source: via MSNBC.com

Find out what will actually happen if you fail to pay off your credit card debt here.