DebtShield is a debt relief company that works with you and your creditors to negotiate settlements on your unpaid, unsecured debts, like credit cards.

Unlike some debt relief companies, Debt Shield spreads their program service fees out for the duration of the program. This can make your debt settlement a more manageable monthly expense than programs that require higher monthly fees during the first 18 months of your agreement.

For this review, we couldn’t get an exact figure on how much the fees were. A typical fee would be a percentage of the amount owed to your creditors. Other similar companies charge 15% of the amount you owe.

Here are some quick facts about Debt Shield:

About the Company

DebtShield’s target clients are those with at least $10,000 in unsecured debt, who can’t afford their monthly minimum payments, and who may be behind on their payments or considering bankruptcy. If you qualify for the program, DebtShield will contact your creditors to negotiate a settlement that’s often 30-50% of what you originally owed. The average program graduate is out of debt in less than 30 months.

Starting Out

After a no obligation consultation with a debt consultation or filling out the application online, you’ll receive a DVD that explains the program and your responsibilities while enrolled in it. You’ll need to fill out some paperwork as well as make your monthly payments in a consistent manner.

Your monthly payment is set aside in a third-party savings account, and when enough money’s accrued, DebtShield will negotiate with your creditors to settle your debts for less than you owe.

Unsecured Debts

Like other debt relief companies, Debt Shield can help you with unsecured debts like credit cards, medical bills, personal loans, store cards, and unsecured bank loans. For secured debts that are guaranteed by your assets, such as federally-backed student loans, taxes, car loans, mortgage loans, and insurance policies, you’ll have to seek other means of assistance.

Term Guarantee

One interesting facet of Debt Shield is their term guarantee. They’ll cut your remaining monthly maintenance fees in half if you aren’t out of debt by the time they project.

However, since most clients tend to spend 12 to 36 months in the program, you should have plenty of time to settle your debts in a timely manner.

Worth Noting

This service isn’t the same as declaring bankruptcy, nor does the company provide legal advice. Also, they don’t repair your credit and they don’t advance you money to pay your debts.

If you need to cancel the program, you’re entitled to a refund of the balance in the savings account set up for you. You won’t be incur any penalty fees, closing costs, or other hidden fees, either. There is no contract, you can leave the program at any time.

Be Aware of Your Program & Your Responsibilities

A look at the Better Business Bureau of Greater Maryland’s Reliability Report indicates various issues reported by consumers in the areas of billing or collections issues, sales practice issues, service and customer service issues, refund or exchange issues, and issues not defined. Of those 29 cases, 11 were closed in the last year. Debt Shield has responded to BBB’s inquiries by addressing the issues, in some cases resolving the matters to the consumers’ satisfaction. There are 0 outstanding complaints against DebtShield.

Although DebtShield isn’t a member of the BBB, the company’s a member of the International Association of Professional Debt Arbitrators and other organizations. DebtShield has also won the Better Business Bureau of Greater Maryland’s Torch Award for Marketplace Ethics in September 2007.

One way to head off disputes with your debt relief company is to read each part of the agreement you sign. If you something isn’t clear, give them a call and ask for a more detailed explanation.

Will Debt Collectors Still Call?

DebtShield notes that because you’ll be directing your funds to the debt settlement program instead of making regular monthly payments to your creditors, you’ll fall behind. They advise you to direct any collection calls and letters to Debt Shield while you’re in the program.

Ticking Debts Away

On their website, DebtShield runs a ticker that details an estimate of their overall settlement amount, updated every business weekday. The ticker recently showed a total of over $69 million, an indicator that the company provides their clients with positive results. You can also see testimonials from various clients who seem satisfied with the results of their debt settlement programs.

Debt Shield is located in Columbia, Maryland and serves clients from across the United States. You can reach them online at their website.