Debt settlement companies typically work by getting you to make monthly payments to a new bank account. Once enough money has accumulated in the account, they can then make their first settlement offers to some of your creditors.
This may work out for some smaller debts, but what about larger debts? How long is it going to take to save up enough money to settle a large debt, and are your creditors going to wait that long? Usually they won’t, and while you’re making payments to accumulate the money for the settlement, your debts become further and further past due.