I, almost, signed up for a debt consolidation with a company called "Fidelity debt Consolidation". They said I could settle my debt of $24,890.00 for less than $14500.00. In my first month and second I would pay $670.00 dollars, which it would go for them. They told me after that I would pay $430.00 for 30 months, which the many would go to a trust fund under my name. MY problem with that is there too many fees, from them and I also would have to pay $9.99 for maintance on my trust fund account, plus $25.00 for each payment for the settlement accounts. In three years this $9.99 would become 359.64. After I canceled my account with them they told me I would not be able to settle with my creditors as they would. Is it true? Did I made a mistake?

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Probably not...go with your gut instinct. In a lot of cases you can settle directly with your credit cards.

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I assume you mean Fidelity debt solutions because I can`t find any company by the name Fidelity debt consolidation.

You can still settle on your own and save money. Think about it. I assume you were going to pay them 15% fees or at least somewhere in that neighborhood. The fees you save will offset the maybe not as low settlement they could achieve. They were trying to save you as a client by telling you that. Of course they weren't necessarily lying either because a settlement company does have the advantage of settling in bulk which helps them achieve lower settlements. I wouldn't say you made a mistake for quitting the program if you want to take the time to settle on your own and save some money in fees. I am sure they would have done good work had you stayed with them too. It just kinda sucks because you have already paid some fees to them.

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14,500/24,890 = .58 or 58% settled amount. It looks like the 14,500 figure includes everything but the $25 fee which I can't tell if that is monthly or just charged when an account is settled based on your post. Here is the math:

670 + 670 + (30 x 430) + (9.99 x 30) = $14,540
I don't know where the $25 fits in but if it is monthly then that would be another $750.

Anyway after everything but the $25 is added together then you get roughly a 60% settlment rate. You could probably do as well or better on your own but you would have to do all the leg work which includes making the calls and writing the letters. It really isn't too difficult to get 50% settlment offers across the board on your own though and there is plenty instructions on this site showing what you need to do in order to settle. That means you would save yourself over $2000. The biggest key though is the discipline. You have to have enough discipline to save money to settle with. If you go with that program or any other then you are forced into saving $430/month so they have money to settle with. I don't know anything about the company you listed but personally I don't really trust the settlement industry as a whole. If I was going to use one I would probably try to find someone local that I could sit down with or maybe go with a large non profit. That is just my opinion though and others on this board would disagree.

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