There is a bit of a misunderstanding in debt circles regarding the process of credit card debt negotiation and settlement. Namely, many commercials on radio and television promote the "ease" of debt settlement,and how it can provide the perfect solution for those in need of clearing out their credit card balances. Here is some helpful news to those wondering about settlements: this type of debt negotiation is not easy, and it is not for everyone. Really, it should be considered a last resort when no other options are available. It is most assuredly not a simple solution intended to reverse debt issues with little or no worry. So, let's take a much more realistic look at what the process entails.

As you may be well aware, credit card debt negotiation for a settlement is intended as a means of avoiding bankruptcy. Filing for bankruptcy is not only a severe problem for the person that files; the parties that are owed money will have serious concerns as to whether or not they will ever receive payment. As such, the credit card companies might be far willing to accept a settlement offer than see you go into bankruptcy.

However, when you do settle your debt, you end up doing serious damage to your credit score. In fact, this severe damage could remain on your credit report for years afterward. That needs to be seriously taken into consideration prior to looking towards credit card debt negotiation for settlement options.

Once you credit report is damaged in this way, you could be looking at seven years of problems. Procuring additional financing might be difficult, higher interest rates are guaranteed, and the bad credit score will remain a specter on any background checks performed on you. Such risks must be considered prior to making a decision regarding debt settlement.

Of course, a bad credit score due to debt settlement could be the lesser of two evils when compared to a damaged credit score as the result of filing for bankruptcy. So, if bankruptcy is seriously looming over your head as the only viable option in your future, you may be best served looking towards credit card debt negotiation for a settlement.

How can you tell if a settlement is the best option available? There is no blanket answer or black and white solution. However, it is safe to say if you have fallen several months behind on your credit card payments and do not see a means of getting back on track, debt settlement may be the only solution. The ultimate goal here is to get control of your finances in the most effective manner, in the most realistic time-frame. For some, credit card debt negotiation for settlement may be the only option. However, if other options are available, they will need to be explored. You do not want to rush into a settlement prematurely due to the potential problems that can arise in its wake. Thinking the situation completely through is a must prior to arriving at a decision.

Author's Bio: 

Are you looking to know more about negotiating credit card debt for settlement? If it can be the right choice for your situation? And whether you should go with a credit card debt settlement services company, or if you should try your hand at it yourself? You can find all this information on our website, for free:

The author of this article, Shan, was once deep in debt to the amount of thousands of dollars, but is now enjoying a debt-free life by following a few basic, debt relief and money management principles.