"Debt settlement is one of the most effective forms of debt relief in America today. It has helped millions of consumers in credit card debt, medical debt, loan debt, and other forms of unsecured debt. Most importantly, it helps prevent consumers from filing for bankruptcy and consequently devastating their credit worthiness for seven years.

Debt settlement helps consumers with unsecured debts by reducing the total balance owed by a substantial percentage and eliminating the interest rate. Debt settlement programs are meant to help people who are overwhelmed by debt due to being over-extended as a result of financial or medical hardship. The best settlement rates are achieved when an account has not been in good standing for at least four months, meaning that those who are about to fall behind or have been behind on their payments are in luck. The average settlement rate in debt settlement is roughly between 40-60% of the balance. In debt settlement, it is important to remember that credit scores may decline in the beginning because the accounts enrolled will fall behind, but after four months they will begin to be negotiated. This will stay on a consumer’s credit report as "paid as agreed" or "settled", which are standard marks. When enrolled in debt consolidation or credit counseling, it states that the consumer is "currently enrolled in a debt management program" which is like a huge stop sign to new creditors when applying for any kind of credit.

One of the largest gains from a debt settlement program is the savings. When a company negotiates a debt down to 40%, the consumer doesn’t only save 60% but much more. This is due to the interest rate being completely eliminated. Over a period of three to five years with an interest rate even as low as 5%, the consumer would be paying a lot more than the initial balance.

Debt settlement programs are also the shortest lasting programs out of all debt relief programs available today. Usually a debt settlement program lasts between 12-36 months. Debt consolidation and credit counseling programs have a standard of a 60 month term. Due to the speediness of debt settlement programs, consumers are able to be debt free much sooner and begin rebuilding their credit scores immediately. It usually takes two years of steady building to regain a credit score of approximately 750 from a score as low as 500."