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Credit card debt settlement is one of the small number of doable systems available to those in debt. However just as with anything else there are pros and cons when regarding settling your credit card debt balances.

The cons seem like a good place to start.

1. In most situations your FICO credit score will drop. No original creditor will be willing to make a settlement until you have fallen significantly past due. So when you are falling behind your credit rating will take a unfavorable decline. However the bad strikes from credit card debt settlement are correctable, a legitimate credit cleanup company can get those negatives taken off your credit report.

2. The harassment you will receive when falling past due on your debts. As you can imagine you will receive calls over the phone in an attempt to collect the debt. Depending on what establishment you use for credit card debt reduction, collection calls can be greatly reduced if not stopped altogether. But you will receive collections calls to some extent.

3. There are the potential for lawsuits. 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 company this process can be put back so a settlement outside of court can be reached. When you are being sued the company suing usually knows that they will not collect the entire amount and the creditor is usually very agreeable to make a settlement.

Now lets take a look at the positive aspects of debt settlement.

1. The great 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 contemplation the amount of cash you would be losing through minimum payments and high interest.

2. Get out of debt much faster than otherwise possible. 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. This is a far cry away from how painfully long it would take to be out of debt through monthly minimum payments.

I personally feel the pros do drastically outweigh the con's. Nothing is worse than losing hundreds if not thousands of dollars every month for what can be 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 scrapping to get by each month to stay current with your credit card.