It is truly a shame that many people are stuck in this rut of excessive credit debt and consequently wasting tens of thousands of dollars that could otherwise be used for better purposes.

With debt relief, you can quickly eliminate credit card debt. There is no other method of debt relief that will not only save the debtor thousands or tens of thousands of dollars, but also assist them in becoming debt free within a short period.

FICO Credit Ratings

A debt settlement program will have a negative effect on your credit report because it involves defaulting on your payments. If you don't stop making payments, the creditors won't have any incentive to settle your debt with you.

However, the overwhelming majority of those who enter a debt settlement program have already been delinquent in making payments. The sooner a debt settlement program commences, the quicker a FICO credit history will start to improve.

Anyone considering bankruptcy should consider debt settlement first. Bankruptcy simply has too many extreme negative consequences. Considering the fact that it is possible to settle up to 80 cents on the dollar, it is amongst the most effective strategies to save money.

While there isn't any reduction to the principal during the debt negotiation program, it will no longer be necessary to pay the minimum payments specified by the credit agreement each month. Although it will take about 24 to 48 months to pay-off your credit card debt, almost all of the pressure is alleviated because creditor contact will likely be dealt with by the debt negotiation firm.

Cons of Debt Settlement

Although debt settlement may be a quick solution to your debt problems, it does have obstacles:

" Collection phone calls from your creditors are an unavoidable part of the process and you may receive them.

" As with other debt reduction methods, your credit will be negatively affected.

" It is possible to be sued, but the likely hood is very low since lawsuits can be very expensive and creditors use a threat of a lawsuit as a last resort. In the unlikely case that you are sued, you can stop the suit by making suitable arrangements with your creditors.

" There are some companies that will take your money and not perform the settlement services that they agreed to do. Verify the credibility of the firm before you hire them.

The above tips should assist you to get rid of your credit card debt. Take advantage of them.