Debt relief companies will get you out of debt sooner than you could do it on your own, but there are some disadvantages: It won’t always be effective: Not all companies are willing to settle debts You could be required to pay the IRS: The Internal Revenue Service considers any settlement over $600 taxable income. There are exceptions for people who can prove insolvency. Fees: These services can be expensive. However, research proves that the savings regularly outweigh the fees.