If you are you overwhelmed with unsecured debt and are wondering about a debt settlement program, you should beware of the huge pitfalls associated with this type of program.

While settling your debt for “50 cents on the dollar” sounds like the best option out there, reports of very frustrated consumers are running rampant. Many organizations offering this type of debt plan are not fully disclosing the harmful effects of the program.

Here are the things you should know about debt settlement:

• On average the fees run about 15% of your total debt (this means $1500.00 if your debt is $10,000)

• These fees are almost always collected before any monies are set aside for the actual settlement

• Payments are not being sent to your creditors while you are waiting to accumulate enough money to settle the accounts

• Your account balances will increase with fees and interest being added each month that no payment is made

• Collections calls and letters will increase dramatically as they try to collect on your accounts

• It is likely that the accounts will end up in the legal system with the creditors pushing for a judgment to garnish your wages

• Your credit report will [spinsuffer major setbacks while on|be decimated during[/spin] the program and then the “settlement” will show on your report for 7 years after the final payment is made

• The IRS will be looking for the payment of taxes on the amount of debt that the creditor forgave

Although the enticement of the “quick fix for half of the money” seems overwhelming, the majority of people that end up joining a debt settlement program find that the harassment and problems are not worth the pain.

Many are surprised to find themselves in a worse situation than when they began the program and in many cases there are not a lot of options left open to those consumers.

If you are burdened with insurmountable credit card debt, you should really take the time to look into a credit counseling or debt management program. While these programs do not offer the supposed “quick fix”, what they can supply is sound advice and a program that will ultimately help you to get out of debt in about 4 to 6 years and help you to learn how to live within your budget.

These programs can handle all of this without ruining your credit score, avoiding collection hassles, and saving you a small fortune in interest along the way.

If you would like a free financial analysis with a certified credit counselor check out credit counseling at: DebtGuru.com. Their counselors can help you learn how to free up income and get out of debt in a hurry. This website also offers a number of self-help articles.