Allow me to take a few moments to cover some concerns people may have regarding debt settlement and the consequences those who follow this path may face. For instance, the radio personality to whom I was listening was adamant about warning his listeners that their credit score would no doubt take a beating and be reduced significantly. Is this the truth? Yes – if you've been paying your bills on time for several years and you decide to enter into a debt settlement program, your credit score will be negatively impacted.

It makes no sense, but creditors aren't interested in negotiating your debt (or even willing to work with you) until you're several months delinquent, which will obviously have an affect on your credit score. But, there's a very good chance that your credit score isn't as high as you may think it is if you're carrying high balances, or have had even one late payment.

If you're concerned with your credit score and how it may be affected, you should probably sit down and re-prioritize. Let's be optimistic and assume your current credit score is 700. Let's also be realistic and take a serious look at why you're considering debt settlement; it's probably because your monthly credit card bills are increasingly becoming a burden and it's difficult to make it through each month with your head above water. If this is the case, how is having a decent credit score beneficial? The main “perk” of having a good credit score is to obtain credit. Do you really want or need more of that? Probably not. So, if your credit score is reduced for 6-12 months, big deal, right? This option is much better than your alternative, which is being strapped with debt and high monthly payments for the next several years.

So, yes, the “experts” may have a portion of their message correct, but it's so important to take a good look at the larger picture so that you can clearly understand all of your options and how they affect your overall well being in the long run. Picture yourself five years from now; you can either be free of debt and living comfortably, or you can be exactly where you are right at this very moment – still owing several thousand dollars to your creditors.