Whenever you see the term "debt settlement" it creates some type of controversy - either "its a scam" or "I tried it and it made my problems worse" or some ad promising "get out of debt and save 50% or more".

Lets set the record straight: debt settlement is a legitimate debt relief option for certain situations. It's not an easy way to get out of paying what you owe. It's not an easy way to reduce your debt just because you went crazy with the credit cards. But for those who are getting way behind in their payments, it's potentially a very real way to avoid bankruptcy and save you from financial ruin.

But there's a problem.

Most of the companies out there don't tell you the truth. They just try to sign up anyone with some debt. Then start charging outrageous fees. Don't explain to you how debt settlement really works. Then when the process starts causing you some pressure, you back out.

By then, they've got their money. And you've got nothing but more debt.

BUT......

It doesn't have to be that way. There are debt settlement companies that won't rip you off. But instead they will properly educate you. And will help you get real results. If you really fit the profile of someone who can benefit from settling your credit card bills.

So, how do you find honest advice about debt settlement?

As I state over and over again, do your homework!

• Ask lots of questions
• Get everything in writing before you send in any payments
• Actually read what you are signing (and ask more questions if you don't understand)
• Check references, check the BBB rating
• Shop around and compare companies & their fees
• Above all, realize that this is NOT an easy way to get out of debt and avoid paying what you owe

If you choose not to do any research, prepare yourself for a very stressful experience!

SERIOUSLY NOW - Are there really people out there who think there's some easy way to get the banks to ignore the $48,000 in debt they've built up over the last few years and just say "Hey, it's ok Bob, we'll just forget how much you owe us and let you pay if off for only $16,000 and save 66%, just because you're a nice guy". I guess so.

Sadly, stories like these don't get any good publicity. All you read about are the stories about poor old Bob from some little town who got ripped off.

P.S. Shameless plug: Here's one of the pioneers of the debt settlement industry, a true expert in the field - Charles Phelan, owner of ZipDebt.com. Read for yourself the results he's helped consumers achieve the last few years.

If you've had success with another company, let us know in the comments below.

The following is a guest post by CreditShout, a personal finance blog dedicated to teaching people how to beat the card companies at their own game and save money with credit cards.

Cash back debit cards are becoming increasingly popular. With everything being accessible from the internet, the once “good credit only” exclusivity of cash back credit cards has opened up avenues of both access and appeal to cash back debit cards. With places like Paypal offering 1% cash back on every debit card purchase, it may seem as if the sky is the limit with the cash back debit card. However, upon closer examination of the reward programs offered by debit cards you will find that this isn’t always the case.

Debit Cards Versus Credit Cards

Several years ago, there was a battle of the credit cards regarding which company offered the most frequent flyer miles and which company offered the most cash back incentives for their users. It was not long before banks and debit card companies took note of this and considered jumping on the incentive bandwagon.

It has been a slow evolution for the debit card and its various incentives, yet the progression remains stable. Another cash back debit card provider is Perk Street Financial. Perk Street Financial also offers 1% cash back on all non-pin purchases. While 1% cash back on a debit card can add up in the long run, in the interim it does not seem to be worth it as compared to cash back credit cards.

Are Cash Back Debit Cards Worthwhile?

A cash back debit card may only be worthwhile as long as there are no annual fees associated with it. If by chance, there are annual fees, then you will probably end up spending more than you earn. Additionally, debit cards that are offered through a specialty retailer may have certain restrictions on how you can qualify for cash back. There may be a limit on which gas stations, air carries, supermarkets or department stores.

Credit card companies like Citibank and Discover offer their users a plethora of incentives, from frequent flyer miles (check out the Capital One Venture Rewards Card), to discounts at popular stores, freebies at coffee shops and of course, there is the idea of getting cash back. Most of the major credit card companies also have a higher cash back percentage.

Where debit cards may yield on average a 1 % cash back reward on purchases, cash back credit cards sometimes offer up to 5% cash back rewards incentives. In addition to the cash back incentives, credit card companies consistently have ongoing and varied rewards campaigns that are tailored to the average shopping habits of their customers.

Furthermore the credit card companies offer a more varied and completely customizable shopping experience. Partnered with major brands (whether those brands are retailers, computers or celebrities) the major credit card companies have a rewards system that is guaranteed to encourage their consumers to shop as much as possible.

Debit cards, on the other hand seem to only offer variance in the company that sponsors the debit card. For example, many prepaid debit cards may be sponsored by a recognizable company which might kick in a 1% cash back incentive should the consumer shop at that particular retailer.

Wal-Mart offers a prepaid debit card but it may not yield a 1% cash back reward. The brand Baby Phat which falls under the arm of a company owned by mogul Russell Simmons has a prepaid debit card called the Rush Card. While the Rush Card may not have offered cash back, it did offer discounts of up to 10% at participating stores that may be partnered with the Rush Card.

At the end of the day, the incentives offered by a credit card regarding cash back and discounts at stores are more worthwhile than those offered by the debit card companies. For more information on debit cards versus credit cards, you can contact your local bank or you can check online to see if your debit card offers rewards.

Throughout my childhood and well into my adolescence, my parents struggled with debt of all kinds, especially credit card debt. Witnessing them go through such money travails, I told myself early on that I wouldn't make the same mistakes they did. Although I feel as though I would have been much better off had they not made these debt-inducing mistakes in the first place, I think, in the end, that had I not witnessed their mounting debt myself, I would not have realized what a danger credit card debt can be.

While most of my peers in college excitedly nabbed credit cards when the going got tough--as it inevitably does as a college student--I simply did without. Of course, this can be difficult when all your friends want nothing more than to go out to eat or drink constantly, but in the end, it paid off. Still, since credit cards are so tempting during those college years, when adolescents get their first taste of "freedom", I think it's absolutely critical that parents teach their children about responsible finances very early on. Here are a few tips.

1. Talk to your kids about credit cards before they go to college.
   It's better to talk often and talk early about the pros and cons of credit cards. College students aren't a particularly responsible lot, or at least not yet, so suggest to them that it's better to wait until after college, when they have the resources and presence of mind to pay them off every month.

2. Don't send your college kids money if they run out.
   It sounds cruel, but in the end, it will teach them how to budget. Determine before your kids head off to college how much money they may need for books and personal expenses. While it's okay to be a bit more flexible during your kid's first semester in college, when both of you are still trying to figure stuff out, put your foot down later. College is the time to learn the art of saving and resourcefulness, so that they'll be fully prepared once out in the real world.

3. Practice accounting of expenditures with your child.
   This is one habit that I never learned early and I struggled with later on in life. Show your child how to keep a log of every purchase they make, so that they have an accurate, instant idea of how much they've got in the bank. Relying on online statements only sets you up for over-drafting, and this is something I certainly learned the hard way.

In the final analysis, getting out of debt is tough but doable. It's far easier to never accrue debt in the first place. Even if you already made those critical mistakes for which you are paying dearly now, help out the next generation. Don't let it happen to them.

This guest post was contributed by Jena Ellis, who writes on the topics of Online Certificate Programs. She welcomes your questions and comments at her email Id: jena.ellis20@gmail.com.