We here in America are on the verge of experiencing a credit epidemic. The amount of consumer debt is at a record high and we are close what many consider to be a recession. Thus leaving many debtors with fewer dollars in there pockets and more bills to take care of. In this article I will go over the ups and downs of the various available systems of credit card debt relief.

Consumer Credit Counseling Programs:

Pros- Consolidate monthly payments, lowered interest rates, fixed payment not minimum payment.

Cons- Long term repayment, stringent program rules, low graduation rate, hard to obtain mortgage on program, usually payments are close to what minimums were before joining, one missed payment can result in being kicked off program.

Bankruptcy:

Pros- A full discharge of debts owed if you qualify for a Chapter 7, the collectors cannot call and harass.

Cons- Long term negative effect on credit score, made a public record for the rest of the debtors life, change in bankruptcy law made Chapter 7 very hard to qualify for, court ordered repayment process.

Credit Card Debt Settlement :

Pros- Debtors can save a tremendous amount of money of what is owed, fastest way to get out of debt, private issue and is never made public.

Cons- Temporary negative effect on credit rating, dealing with collectors,possible legal action could be taken by creditors.

All of the above methods do have their respective pros and cons. However what really determines which method is best for you really depend on the current financial situation that you are in. For people stuck deep in debt but have income to pay a portion of it off then debt settlement would be best, to help avoid Chapter 13 bankruptcy. Those who have smaller amounts of debt and have no issue making the monthly minimums plus more, than credit counseling is a better course of action. Then of course for some the only course of action is bankruptcy.

Steve Bis is a credit card debt analyst with the US Consumer Advocate, which practices in credit card debt reduction.

- Steve Bis