While debt settlement can be one of the better options as far as debt relief methods are concerned, just like any other debt relief method there are a few negative aspects to it which someone needs to understand before going through the process.

We will start with the con's.

1. A temporary reduction in your credit score. No creditor will be willing to make a negotiation until you have fallen at least 2 to 3 months behind. So when you are falling behind your credit report will take a negative hit. However the negative remarks from debt settlement are correctable, a good credit repair agency can get those negatives removed.

2. Harrassment from collectors. As you can imagine you will recieve phone calls in an attempt to collect the debt. Depending on what company you use for debt settlement collection calls can be greatly reduced if not stopped. But you will recieve calls to some degree.

3. Potential of being sued. This is always a possibility, while it does not accure anywhere near as much as one might think it does happen. Again with a good company this process can be delayed so a settlement outside of court can be reached. Which when you are being sued they company usually knows that they will not collect the entire amount and the creditor is ususally very willing to make a settlement.

Now for the pro's.

1. The tremendous savings! You can realistically look to save between 40-50% of the amount of debt you owe. Not only will you save money off of you current balance, but you must take into consideration the amount of money you would be losing through minimum payments and high interest than debt settlement be the difference of tens of thousands of dollars.

2. Get out of debt quickly. Of all the debt relief methods settlement will put you on the fasted road to becoming debt free. You can be looking to get out of debt within 2 years or less. Which is a far cry away from how long it would take to be out of debt through minimum payments.

3. The longer term positive effect on your credit score. Many people looking into settlement have lower credit scores than they may think, even if they are current. Why? Because of your debt to credit-limit ratio, which accounts for 30% of your credit score. So once you start settling your debts out your score will increase.

I personally feel the pro's heavily outweigh the con's. Nothing is worse than losing hundreds if not thousands of dollars every month for possibly decades through minimum payments and high interest. Credit card debt is death to your finances. How in the world can you save or invest for the future when you are barely making ends meet each month to stay current with your credit card.

Tags: consumer credit counseling, credit card debt settlement, credit card debt settlement, credit counseling, debt settlement programs