For anyone considering bankruptcy, debt settlement is a good alternative. While debt settlement does get recorded on your credit report, it is usually considered less damaging to your credit than bankruptcy.Plus, with less debt, your credit can improve faster, and you'll have much more financial flexibility and "breathing room!"

For anyone behind on their payments, debt settlement is also a good option to consider. Since late payments are already considered a negative mark on your credit, settling your debts allows you to finally pay off the debt.

For anyone who just has not made any progress paying off their debts, but still pays on time, debt settlement can be considered. While the process of settling debts does work against your credit score, so does a high amount of debt.

So, keep in mind that the main benefit of debt settlement is to pay off your debt as quickly as possible, saving you money in both interest in principal, and allowing for greater financial flexibility.

After all, having good credit is worthless, if you don't have any money to spend!