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We here in U.S are on the brink of experiencing a major credit problem. The quantity of credit card debt has hit a record high and we are close what may be a recession. Thus leaving a plethora people with less money in there pockets and more debts that they have to pay on. 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, reduced interest rates, fixed payment not minimum payment.

Cons- Long term repayment, stringent program rules, most do not complete program, hard to obtain mortgage on program, payments are not very low, one missed payment can result in being kicked off program.

Bankruptcy:

Pros- Upon qualifying for Chapter 7 full amount of debt is discharged, avoid collection calls.

Cons- Very bad effect on credit score, lifelong public record, change in bankruptcy law made Chapter 7 very hard to qualify for, if forced into Chapter 13 court dictates how much you must pay for how long, debt has no say.

Credit Debt Settlement :

Pros- Great savings on debt amount owed, by far quickest route of getting out of debt, private issue and is never made public.

Cons- Short term 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 option is best for you really depend on the current monetary situation that you are in. For individuals swamped deep in debt but have money to pay a portion of it off then debt settlement would be best, to help escape bankruptcy. Those who have lesser amounts of debt and have no problem making the payments they currently have plus more, than credit counseling is better. 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.