Debt Settlement works well for debts that are larger, like multiple credit card debts, Repossessions, Personal loans etc. It will potentially allow you to lower the amount of debt you actually have to pay back. In fact, sometimes debts can be settled for as much as 40 cents on the dollar.

There are two major drawbacks to debt settlement.

1: The fees charged by debt settlement companies are based on the total amount of debt you owe and they are as much as 15% - 20%. That's a pretty hefty fee ultimately reducing the actual amount of savings to the consumers.

2: Debt settlement does a number on your credit score. Although it's better then having a judgment or charge off on your credit, the notation ?settled for less? doesn't help your credit any.

Then you have Credit Repair.

Credit repair if performed by a legitimate company; can potentially do a pretty good job of removing a number of all the smaller debts. E.g. charged off target cards, late pay notations etc. The problem with credit repair is that more then likely, the larger debts will remain. When the dollar amount is large enough, creditors will validate the debt and many times take you to court and get judgments.

You can't blame them, if somebody owed me 10,000 I would be pretty persistent about getting it back too.

While both have their advantages, neither of them are the perfect cure. But there is a new program launched by My Credit Group that just may be the closest thing to a perfect solution.

Their new debt settlement program combines both credit repair and debt settlement. Here is how it works.

First: My Credit Group does a round of free credit repair to eliminate as many of the negative accounts as possible from your credit report. This accomplishes two goals. If negative items are removed, your credit score will go up.

Secondly, it will reduce the amount of debt you have to actually settle.

Then, They settle whatever is left and it gets even better. After everything has been settled, there is another free round of credit repair to see if they can get the ?settled for less? notations removed. Could it be the perfect solution? You decide, but this by far the most effective program so far.

Lower fees, settling for pennies on the dollar and a potentially greatly improved credit score!