While debt settlement can be one of the more attractive routes to take when looking to get out of debt, just like any other credit card debt relief method there are a small number of of off putting aspects to it which somebody must learn to recognize before going through the process of credit card debt settlement. However just as with anything else there are pros and cons when regarding settling your credit card debt balances.

First we will start with the cons.

1. In most situations your credit score will drop. No credit issuer will be willing to make a negotiation until you have fallen significantly past due. So when you are past due your FICO credit score will take a negative hit. However the derogatory remarks from debt reduction are able to be fixed, a legitimate credit corrections organization can get those negatives removed.

2. Harassment from debt collectors. As you can imagine you will receive calls over the phone in an attempt to collect the money they feel they are owed. Depending on what firm you employ for credit card debt relief, collection calls can be seriously reduced if not stopped altogether. But you will receive calls to some degree.

3. The creditors can decide to sue you. This is always a possibility, while it does not occur anywhere near as much as one might think it does happen. Again with a honest organization this process can be put back so a settlement outside of court can be reached. When you are being sued the collector filing for suit usually knows that they will not collect the full balance and the creditor is usually very willing to make a settlement.

Now for the upside of debt settlement.

1. The large amount of savings! You can honestly look to save between 40-50% of the current balance. Not only will you save money off of your current balance, but you must take into contemplation the amount of income you would be throwing away through monthly minimum payments and high interest.

2. Get out of debt extremely fast. Of all the debt relief systems, settlement will put you on the fasted route to becoming free of your debts. You can be looking to get out of debt within 3 years or less. This is a long shot away from how painfully long it would take to be out of debt through monthly minimum payments.

I personally think the pros do heavily outweigh the con’s. Nothing is worse than losing hundreds if not thousands of dollars every month for what will be decades through monthly minimum payments and high interest. Debt with credit cards is detrimental to your financial well being. How in the world can you save or invest for the future when you are just trying to get by each month to stay up to date with your credit card bills.

Steve Bis is a debt analyst with the US Consumer Advocate, which practices debt settlement.

- Steve Bis