If you are seeking debt relief and trying to decide whether to settle your debt or not, there is no 'easy' or 'right' answer. Your debt situation is different and unique from everyone else's, and because of this the debt solution that you choose will be unique to you.
Debt settlement is but one option that you may, or should be considering. And because 'on the surface' it appears to be an attractive debt solution, you are likely curious as to whether or not you should pursue this option and settle your debts for less than you owe. After all, the possibility of only having to pay 25% to 50% of your outstanding debts and being debt free in 12 to 36 months is almost too good to pass up. Especially when compared to paying the minimum balances on your credit cards for the next 50 years or so. (Yes 50 years is about the time it would take you to pay off your credit cards if you just continued to make the minimum payments.)
By simply asking yourself these three questions, you can quickly
determine whether or not debt settlement is an option for you...
If you answered yes to all three questions then settling your debts through negotiation is definitely a debt help option that you should consider. Whether or not you actually "settle upon" debt settlement as your chosen path to achieve debt elimination will of course require a more in depth look at you financial situation.
Debt settlement can be an excellent option for those individuals who would otherwise be considering a Chapter 13 bankruptcy filing. As such, before you commit to a debt settlement program it is advisable to speak to a bankruptcy attorney who can thoroughly explain the pros and cons or both of these options. In many cases filing bankruptcy can be a better option than settling debts.
Let's say that you answered yes to questions 1 and 3 above, but you haven't missed any payments on your debts. Does this mean that debt settlement is not a potential debt relief option for you? Maybe not. You see, many people facing extreme debt problems will often "borrow from Peter to pay Paul" so to speak, in order to avoid missing any debt payments. In other words, they will borrow from one credit card to make the minimum payment on another. And of course, this creates a house-of-cards that is destined to come tumbling down.
So if you find yourself in this situation (borrowing from one source to make the payments on another debt), then even though you haven't technically missed a payment, it is usually inevitable. And therefore, the use of a debt negotiation strategy to settle your debt should be something that you consider.