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Debt Settlement is one of the small number of possible methods available to people stuck in debt. However just as with anything else there are pros and cons when regarding settling your debts.

First let us unveil the cons.

1. A short-term decline in your FICO credit score. No original creditor will be willing to make a settlement until you have fallen significantly past due. So when you are falling behind your FICO credit report will take a negative hit. However the derogatory remarks from debt reduction are fixable, a decent credit cleanup agency can get those negatives removed.

2. Harassment from collection agencies. As you can envision you will get phone calls 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 greatly reduced if not stopped altogether. But you will receive collection activity to some degree.

3. Potential of being sued. This is always a possibility, while it does not occur anywhere near as much as one might think it does happen. Again with a reputable organization this process can be delayed so a settlement outside of court can be reached. When you are being sued the creditor filing for suit usually knows that they will not collect the entire amount and the creditor is most often very agreeable to make a settlement.

Now for the pro's.

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

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

I personally feel the pros do considerably outweigh the con's. Nothing is worse than forfeiting hundreds if not thousands of dollars every month for what can be decades through monthly minimum payments and high interest. Debt with credit cards is death to your financial situation. How in the world can you save or invest for the future when you are scrapping to get by each month to stay up to date with your credit card bills.