We here in U.S are on the threshold of experiencing a credit crisis. The sum of credit card debt has hit an all time high and we are approaching what many consider to be a recession. Thus leaving a plethora American families with less money in there pockets and more bills that they have to pay on. In this writing I will review the ups and downs of the various available methods of credit card debt relief.

Consumer Credit Counseling:

Pros- One monthly payment, lowered interest rates, fixed payment not minimum payment.

Cons- Long term repayment, stringent program rules, most do not complete program, obtaining a mortgage on the program is almost impossible, 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, the collectors cannot call and harass.

Cons- Long term negative effect on future credit, made a public record for the rest of the debtors life, hard to qualify for a Chapter 7, if forced into Chapter 13 court dictates how much you must pay for how long, debt has no say.

Credit Card Debt Settlement :

Pros- Great savings on debt amount owed, by far quickest route of getting out of debt, not made a public record.

Cons- Short term negative effect on credit, 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 route is proper for you really depend on the current financial well being that you are in. For people trapped deep in debt but have money to pay a portion of it off then debt settlement would be best, to help avoid bankruptcy. Those who have lesser amounts of debt and have no issue making the monthly minimums plus more, than credit counseling is a better course of action. However there are some people out there who have literally no choice but to go into a bankruptcy proceeding.

Steve Bis is a debt analyst with the US Consumer Advocate, which practices debt relief.