I was recently reviewing different websites and debt settlement programs to see what this debt settlement thing is all about. From what I have learned I would personally STAY AWAY from this type of program. I know that some people have been successful, but from what I could see is, they are going to get you farther into debt. One of my friends recently looked into this program. After a very long conversation with one company they had her paying $800 per month, and her monthly minimums were around $600. They kept telling her that her debt would be paid off in 3 years. She bascally laughed at them, she could put the extra $200 per month towards the debt and be paid off in a year to two years! Another one she talked to was only $400 per month, but they collected it monthly for 3 years, then went to the creditors and Negotiated till it was what you paid them. But they also said she would be receiving constant harassing phone calls from creditors and would probably want to change her phone number.

I think that the best way to get out of debt is to 1. quit accumulating more debt! Cut up ALL credit cards! 2. Set up an emergency fund first of $1000, even if it's $5 a week that you put in, that's better then nothing. IF you don't have your stimulus or tax refunds going to anything really important such as mortgage payments or living expenses, use this to start your savings! And finally the 3rd step is to go through your budget and find any extra that you can to put toward the debt that is bugging you the most! Get it paid off, take the extra plus the minimum from that payment to the next bill, and so on. This causes a debt snowball and you will be feeling much better, and closer to debt free in no time. This also helps to develop new, more financially secure habits!

If none of this is an option, then I would suggest a credit counseling program, and at the worst case, bankrupcy. Credit Counseling does show on your credit report like a chapter 13 bankrupcy, which is basically a repayment plan. So think very long and hard towards this option and see if there is anything at all that you can do besides these two options!

Good Luck!