Credit card debt settlement is one of the small number of feasible options available to people riddled with credit card debt. But like anything else in life it does come with it’s respective pros and cons.

First let us unveil the cons.

1. A temporary reduction in your credit rating. No credit issuer will be willing to make a settlement until you have fallen at least 2 to 3 months behind. So when you are past due your FICO credit report will take a negative decline. However the negative strikes from debt reduction are able to be corrected, a reputable credit corrections organization can get those negatives taken off.

2. The harassment you will get when past due. As you can imagine you will be getting calls over the phone in an attempt to collect the debt. Depending on what firm you hire for credit card debt settlement, collection activity 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 legitimate company this process can be delayed so a deal outside of court can be reached. When you are being sued the creditor suing usually knows that they will not collect the full balance and the creditor is more so very agreeable to make a settlement.

Now for the pro’s.

1. The enormous savings! You can honestly 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 income you would be forfeiting through minimum payments and high interest.

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

I personally think 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 minimum payments and high interest. Debt with credit cards is cancer to your financial situation. How in the world can you save or invest for the future when you are barely making ends meet each month to stay up to date with your credit card bills.

Steve Bis is a debt analyst and research assistant with the US Consumer Advocate, which primarily practices in credit card debt settlement.

- Steve Bis