Debt settlement is an innovative debt relief option for people who need relief from a serious amount of high interest credit card debt (typically $15,000 to $125,000 or more). Through debt settlement, debt specialists negotiate with your creditors on your behalf to pay less than what you owe – with the goal of "settling" your credit card debt to what you can afford to repay. Debt settlement has short term relief with a reduced monthly payment, long term relief allowing you to payback less than what you owe, and time savings getting you out of debt in approximately 48 months.
Pros
One low monthly program payment – significantly less than your current minimum
Typically resolve debt faster than you can on your own -48 months
By settling debt, you can save a substantial amount of money
While negative to credit, not as severe or long-lasting as bankruptcy
Cons
Program primarily benefits those with high-balance credit cards
Success relies on making timely and consistent monthly payments
Creditors could increase collection efforts
Negative impact on credit due to default on credit agreements