Wow, that's a tough question. One I struggled with a few years ago. And one I see discussed occasionally on various blogs, and asked on various message boards, especially Yahoo Answers.

For those who don't know, debt settlement is a process where you negotiate with your creditors to pay off your credit card debts for less than you owe.

But should we even think of money in moral terms? If so, is borrowing money moral? Lending it at high interest rates? Giving credit to people who probably shouldn't have it?

There are lots of ways to think about this. So let me lay out both sides of the debate:

Debt settlement is morally WRONG:

• You borrowed the money, you should pay it back. All of it. As you agreed to.
  (OK, this is a good argument).

• Many debt settlement companies are scams, or will rip you off.
  (This is true. But there are plenty of good, honest companies out there. And even if it is true, that doesn't mean the process is morally wrong, just that some of the debt settlement programs that offer services are dishonest. So this is not really a good argument.)

  Many people are looking for an easy way out.
  (True. In all areas of life, not just with credit card debt. But not everyone who considers debt settlement is looking for an easy way out. People lose jobs, get hurt without health insurance, get overwhelmed and simply need help. Debt settlement is one of those options. Again, just because this is true of some people doesn't make the settlement process immoral).

Debt settlement is morally RIGHT:

So you need help getting out of debt? No big deal, lots of people need help these days. Just don't be like the ones who sign up for a debt relief program with no idea what they are signing up for - and then complain about getting ripped off.

Sadly, many people who complain loudly about debt relief scams got ripped off for one of two reasons:

• They didn't check out the company first.

• Didn't really get ripped off, but had no idea what they were signing up for.

And these people give the good, honest companies a bad reputation. So do yourself a favor, and ask yourself these 6 questions BEFORE you sign on the dotted line (or before you give away personal information without signing anything).

1 - What type of service do you offer?
There are many terms used by professional companies - Debt relief. Debt management. Debt settlement. Debt consolidation. Credit counseling. So it is critical that you get a detailed explanation of the service you will be getting. It really doesn't matter what it is called. But it does matter what the company will do for you. And if you don't know what they'll do, how can you determine if it will help you? DO NOT sign up with any company that doesn't give you specifics. A company that just promises to "help you get out of debt" is a disaster waiting to happen, and you should run away from them.

2 - How exactly will you help me?
Once you know what service the debt relief company will perform for you, then you need to know how they will do it for YOU. Sure, not every situation is exactly the same. But you should know how they will help you get out of debt. Will they consolidate your payments? Lower your interest? Settle your debts for less? And when will each step happen? What else do you need to do? Don't be afraid to ask lots of questions. If you don't understand the process BEFORE you begin, you'll be setting yourself up to be miserable when the collectors call, or your credit gets ruined, and you don't know why.

3 - What does it cost?
Nothing in life is free. Including "non-profit" debt relief or credit counseling or whatever they call it. Non-profit simply refers to the way their business is set up, and does not mean you don't have to pay, or that the fees will be affordable to you, or that you won't get ripped off. So make sure you know the exact costs up front. If you don't get actual dollar amounts, walk away and contact another company.

4 - What is your BBB rating?
The Better Business Bureau will give an idea of how the company has performed for other customers. It is not perfect, but you can see if a company has a few complaints against them, or a few hundred. And you'll get to see if they respond to the complaints, or just ignore them. Don't focus on the "score" or "grade" since some local BBB's give out "F" grades to all companies in the debt industry, even if they don't deserve it. So look at the entire review, and stay away from any company with more than a 10-20 complaints.

5 - What are the downsides to using your service?
Yes, every debt relief program has some downside. Either the cost. Or the impact on your credit. Or that it takes time to get results. So be prepared for something negative. For most people that's still OK, since the end results of being out of debt will outweigh the negatives. But you should know the truth. If the company you choose won't be honest and tell you the truth, and insists there is no downside, find another one.

6 - Can I see everything in writing before I decide?
In most cases you should be asked to sign paperwork before you get started. If not, don't send any money or account numbers or anything personal without a written agreement. And when you do get the paperwork, read it carefully. If you don't understand what it means, ask the company to explain, or ask a friend or relative with some legal experience to read it over and see if they find anything wrong. Once you sign it and send it in, you lose the ability to easily back out of a bad agreement.

Don't assume that just because a company creates a fancy, expensive looking ad, or a professional looking website, that they're a good company to work with. Do your research up front. And if something doesn't seem right it probably is not. Some people don't understand personal finance very well. And that's OK. But if it sounds too good to be true - that's because it probably is!

You can search for a debt relief company on your own. Or click here for the debt relief company we recommend.

Wouldn't it be nice if getting out of debt was as easy as A-B-C? Well, the honest truth is that it's not that easy. It takes work. And time. And stress. And planning. And patience.

For most people it takes years to get deep enough into debt that you need help. And for most people it takes years to get back out.

If you can't deal with that, then you're not being honest.

But if you do come up with a plan AND you make a commitment, you can get yourself out of debt. It doesn't matter which path you take. Credit counseling. Debt settlement. Banktruptcy. Debt consolidation. Borrowing from relatives. All of them work, in the right situation. And none of them work if you don't really go full steam ahead.

Here are the real ABC's of getting out of debt:

A
Acknowledge that there's a problem. Sounds obvious. But many people don't realize that the solution to their money problems is WITHIN their own heart and mind. Sure, you can get professional help. But YOU need to understand that YOUR decisions got you into debt. And YOUR decisions can get you out. But first you need to take ownership of yourself and your money decisions. It may be that you spend too much. Or make too little. Or have a true financial hardship. In any case, take back control, and you'll be one step closer to a solution.

B
Begin immediately to fix the problem. Don't wait for your next paycheck. Or your raise or bonus at work. Or the next lottery drawing. All of those may happeen. Or they may not. But you CAN make commitment to getting out of debt. And write down your goal on a piece of paper. Be specific. Write out all the steps you can take to fix your finances. Like cutting out "extras". Getting an extra job, or a job that pays more. Sell stuff you don't use. Cancel the newspaper. Downgrade your cell phone and cable plans. Stop eating out so frequently. You get the idea...

C
Consider your options carefully. There are several different programs to help you get out of debt. Credit counseling. Debt settlement. Banktruptcy. Debt consolidation. Borrowing from relatives. Look into all of them. Contact 2-3 companies that offer type of each program. Compare details, fees, results from past customers. Ask lots of questions. Then make a decision. And stick with it.

D
Don't get ripped off. If you do decide to get help, this is an important step. Just just call the company you see on late-night TV. Sometimes these ads sound "too good to be true" for a reason. So, ask lots of questions. Get everything in writing. Ask for references. Check with the Better Business Bureau. Go to Google.com and type in the name of the company and see what other people have to say. In short, shop around and do some research. A little time and effort here could save you lots of headaches later on.

E
Enjoy life while you're fixing your money problems. Realize that getting out of debt takes time. But don't wait until the end to have fun. Do little things to reward yourself. Go to a matinee at the movie theater (they're usually cheaper). Clip coupons. Find specials at local restaurants. Head to the beach or lake or take a walk in the woods, these don't cost much. But make sure you stick to your plan so you don't stray too far from your goal.

So that's it, the ABC's (actually the ABCDE's) for getting out of credit card debt faster. Follow these 5 steps and you'll be on the right path to paying off your bills.

It ain't easy. But it works, if YOU make it work!

Have you ever received one of those emails from your friends that sound too good to be true? Like the one where you can help lower gas prices if you stop buying from one of the big name oil companies? Or if you add your name to the bottom of the list and send to 10 of your friends that Microsoft will donate money to charity and end world hunger?

They sound good. But the reality is that most of them are nothing more than a myth (well, they're also a big pain in the neck, too!).

The "cyber world" is full of myths. Some are fun to believe in. Some can be dangerous to your (or your computer). But the lesson here is that you should NOT believe everything your read online.

A few years ago I was struggling with debt. I tried everything to get out of it. But nothing worked. So after months of research, I decided to use the controversial method known as "debt settlement". You can argue whether you like it or not. And you can easily get ripped off if you're not careful. But for me, it was the right solution at the right time.

But everything I read said that debt settlement will ruin your credit until the end of time (ok, it actually said that it would ruin my credit for 7-10 years, but for some people that can seem like a lifetime).

Being the skeptic that I am, I looked into credit repair. I went to the library and local bookstores. Read lots of horror stories online about people who signed up for various types of debt relief and ended up ruining their credit (and there were lots of them). And read lots of information on the Internet from all the "experts" who said you absolutely could NOT get this stuff removed from your credit report, unless you waited 7-10 years.

And despite the fact that there was apparently no chance it would work, I decided to give it a shot. On my own. Using a simple book I found in a bookstore.

And much to my surprise, within about 18 months, my credit was back to normal!

I didn't do anything illegal.

I didn't do anything unethical.

And I'm certainly no legal expert with special skills.

So all this "crap" I read about ruining my finances by using debt settlement was actually a myth! Well, it is true - if you sit back and let it ruin you. But there are ways to fix your credit without doing anything even close to "shady" or evil or devious.

You may think, "well those are the rules and you just have to play by the rules and wait 7-10 years for your credit to fix itself". And if you do, I commend you.

But at the same time, when I asked the credit card companies for help during my darkest days, they refused.

And trust me, I'm one who always plays by the rules. I always stop at stop signs. I always put on my turn signal. I'm neat and organized to a fault. But I just happened to feel that those credit rules were fair. And to get clean up my credit, it only took one simple action - all I did was ask for the bad credit to be removed. I didn't lie. I didn't cheat. I just asked (the key is HOW you ask).

Here are the 5 truths (and myths) I learned the hard way about fixing credit problems:

1) All bad credit MUST remain on your credit report for 7-10 years. If you sit back and do nothing that is correct. But it doesn't have to stay there that long. You just need to ask the right way to get them removed.

2) And you can't get bad credit removed unless the information is wrong. If anything on your credit report is wrong, you should have it corrected. But even if it is not wrong, you can still ask to have it removed. And if the credit bureaus can't verify it (which I learned that they often cannot) they have to remove it. Nothing unethical at all.

3) Debt relief programs will ruin your credit. If you've got so much debt you can't buy groceries without using your credit cards, then you probably need to focus on getting out of debt, and worry about your credit later on. And if being out of debt improves your life, it will be worth it.

4) You need to hire a lawyer or repair company. These companies might work. But even it they do, they're expensive. And they won't do anything you can't do on your own. If you do decide to use a professional company, make sure to check them out very carefully.

5) Credit repair is unethical - after all, if you messed up, you deserve to pay. True, to some degree. But is charging 20-30% interest, or more, ethical? And is giving another credit card to someone struggling to pay the ones they already have ethical? No. So asking the credit bureaus to remove bad credit isn't unethical either.

So if you've had credit problems in the past, you can do something about it. It takes some effort. There are no "secrets" involved. Just a few well-written letters, and a little persistence. And you can take charge of your finances too!

Are you are totally lost in the labyrinth of multiple debts? Does every paycheck seem to laugh at your face because it is another sure shot into your debtor’s pocket? A lot of people in similar situation consider debt consolidation as a solution to their financial crisis. Are their decisions justified? Let’s discuss.

To many people, the debt consolidation seems a magical concept which will make them debt free with a wave of the wand. It cannot be denied that rolling your debts into one neat package appears as an attractive proposition. One monthly payment instead of many can indeed be convenient. You no longer need to juggle with several debts and can manage your finances in a more organized manner. This will definitely help you to save some hard earned money. Depending on the method used debt consolidation can also help you to save on interest. Moreover your monthly payments can get lowered if you take a long term loan. Finally the debt consolidation company handles the collection calls. So you can stay relaxed and stress free. Sounds good huh? Don’t be too excited. You must watch out for the slippery side of consolidation loans. Carefully read the following things:

• Many people wrongly believe that debt consolidation loans are easy to get. Your intention to consolidate debt probably means your credit report is already in a bad shape. Under the circumstance you might not be eligible for another loan at all.
• It’s not true that all consolidation loans have low interest rates. Only secured consolidation loans have low interest rates. Things are just the opposite in case of unsecured loans.
• It may not be always beneficial to opt for secured consolidated loans although their interest rates are low. This is because if you default on your loan then you will lose your asset. Many people make the mistake of securing a consolidation loan with their home. Never take such a step unless you have no other option. If you default on an unsecured debt then your creditor can do nothing more than to file a judgment on your credit report. However, it is not always possible to qualify for unsecured loans. You must have good credit rating to be eligible for it.
• Low interest rate does not mean you have to pay less. Many people consolidate their debt for 20-30 years. In that case you have to pay interest for a long period of time and it can grow bigger than the original debt itself.
• Your poor financial habits, which pushed you into debt, do not change after consolidation. Few people have the discipline to effectively use the debt consolidation to repay their loans. They refuse to part with their poor spending habits and debt consolidation only helps them to rake up more debts by giving them access to extra money.
• Many debt consolidation companies have hidden charges and some are simply scams. So do your homework properly before you approach them.

Debt consolidation is an alluring concept to anyone who is caught in the quicksand of having too much consumer debt. However, the risks and liabilities outweigh its benefits. Therefore you should also consider its alternatives. For instance, debt negotiation is an effective way to lower interest rates and waive fees. So keep in mind about you have read and then decide if it is smart to consolidate debt.

Want to learn more about debt settlement? Check our our reviews of the best settlement programs including a CuraDebt review and DebtShield review.