We here in America are on the threshold of having a major credit problem. The sum of unsecured debt is at a record high and we are approaching what may be a recession. Thus leaving many debtors with less money in there wallets and more bills that they have to pay on. In this writing I will review the ups and downs of the diverse available methods of credit card debt relief.

Consumer Credit Counseling:

Pros- One monthly payment, lowered interest rates, fixed payment structure.

Cons- Long term repayment, not easy program to maintain, most do not complete program, hard to obtain mortgage on program, usually payments are close to what minimums were before joining, the creditors will kick you off the program if one payment is late or missed.

Bankruptcy:

Pros- Upon qualifying for Chapter 7 full amount of debt is discharged, the collectors cannot call and harass.

Cons- Long term negative effect on credit rating, lifelong public record, change in bankruptcy law made Chapter 7 very hard to qualify for, court ordered repayment process.

Credit Card Settlement :

Pros- Debtors can save a tremendous amount of money of what is owed, fastest way to get out of debt, not made a public record.

Cons- Short term negative effect on credit, dealing with collectors, possibility of lawsuit.

All of the above methods do have their respective pros and cons. However what really determines which route is proper for you really depend on the current monetary predicament 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 escape bankruptcy. Those who have smaller debt amounts and have no issue making the monthly minimums plus more, than credit counseling is a better course of action. However there are some people out there who have literally no choice but to go into a bankruptcy proceeding.

Steve Bis is a debt analyst with the US Consumer Advocate, which practices debt relief.