The other day I was reading through the Money section on MSN.com and saw yet another headline bashing debt settlement. Here it is:

Debt cut in half? Don't count on it

Like most articles, you'll learn all about the horror stories of people who paid lots of money and got little service. And you'll learn all about the radio and TV ads promising you "the dream" - getting out of debt without any effort.

Of course, there is no magic cure for debt. And there is no magic cure for stupidity. Duh.

So why does debt settlement get such a bad reputation, that makes the whole process seem like just another financial scam?

It's the companies themselves. They're the reason for articles like these.

Because despite what these stories like to tell you, debt settlement is not unethical. It's not illegal. It can help you get out of debt faster. And in many cases it can save you 40-60% of your credit card balances.

But it is NOT a miracle cure for debt. And it's not right for everyone. But those stupid companies out for a quick buck don't tell you the entire story. And the stupid people who sign up with these companies don't do their research, don't read the fine print before signing, and don't educate themselves about a process they don't know anything about.

So, if you're thinking about debt settlement, do yourself a favor - be a good consumer. Read our article 5 tips for finding an honest & reliable debt settlement company. And read our reviews of 3 top debt settlement companies.

You wouldn't hire a financial advisor to invest your money without doing your homework, would you? And you wouldn't hire a contractor to fix your house without checking references, would you? Well, I hope not.

So don't go signing up for debt settlement without knowing what the heck you are getting into!

P.S. Thanks to Mighty Bargain Hunter for listing this post in the latest Carnival of Debt Reduction.