Credit card debt settlement is becoming increasingly popular. Not because people like getting into credit card debt. But because people want to get out of debt - fast! If you've been in debt way too long, and you are having trouble with the monthly payments, then debt settlement might be right for you.

But who should you listen to for debt settlement advice? First, here's who you should NOT listen to:

- Don't listen to the credit card companies! They want you to keep paying as much as possible. And as long as posible. Which is the honorable thing to do. After all, you're the one who got into debt in the first place. But sometimes life doesn't work out like you planned. And you need help. So if you can't make your payments, then settlement may be an option.

- Don't read the online message boards! Many people complain about how they've been ripped off by debt settlement. Sure, there are some companies out there that will rip you off. But most people just don't understand how debt settlement works. So they complain because debt settlement is an aggressive technique. And it's not for everyone.

- Don't listen to the "experts" who say debt settlement will lead to ruin. Sure, debt settlement does hurt your credit. But so does lots of debt. For some people, debt settlement is the right option. For some it is not. But none of these "experts" should tell you whether or not to consider debt settlement without knowing all the details of your financial situation.

OK, so who should you listen to?

You should carefully compare all of your options, ask lots of questions, research each company you are considering, and then decide for yourself which option is best for you.

When considering debt settlement, keep in mind the following:

First, you should be aware that accepting a settlement will negatively affect your credit score, because you will not be paying off your entire debt. If you can pay the full amount then it is better for your credit score if you do so. But if you are having trouble paying your bills, then worrying about your credit is less important than getting out of debt.

Second, you will need to come up with the money needed to settle. Some settlement companies will help you save enough by setting up a savings account for you. Others require a lump sum payment. Either way, settlement requires an amount of cash to pay off your debt. So think carefully about where you'll come up with the money you need to settle.

Third, once you have settled your last debt, make sure you have a plan to stay out of debt. While there are no regulations stating you cannot settle again later, it is not designed as a long term strategy for getting out of debt.

Think of debt settlement as your one "big chance" to start over fresh. So do whatever it takes to fix the problems that got you into debt in the first place, so you can enjoy being debt-free for the rest of your life!.

The first is a defined penalty of 5% of the total loan for the first 5 or 10 years. With the other being linked to the performance of a particular gilt, based on age at time of loan offer. Any early repayment charge depends on whether the redemption yield is higher or lower when the loan is repaid, than it was on the completion date of the loan. If it is the same or higher there is no charge. If it is lower, there will be a charge.

With an increasing level of flexibility now available with Equity Release Schemes, seeking independent professional advice is more important now than at any time in the past, and can potentially save you thousands in rolled up interest.