Ever come across ads that claim to help you reduce your credit card balance by 50% or more and wondered if they are legitimate or just some kind of scam? Well, there are two facets of the story - the good and the bad.

The bad news is 90% of such companies only want to make money off you with little regards whether you managed to reduce or settle your debt at all. Their profit is so high that they can afford to pay people who advertise for them for every lead generated. That's just leads, not even customers. No wonder you see them everywhere.

Debt reduction companies are raking in big money, thanks to the sheer amount of people with credit card debt up to their eye balls. Desperate to turn to "the professionals" after their unsuccessful attempts at coping with debt, these people are easy preys at the mercy of debt reduction companies.

The truth is, these companies charge so high that you can hardly save on the deal even when your debt settlement is successful. Yet, people pay little attention to this despite knowing the hefty price tag as they are led to believe that debt settlement can eliminate all their financial problems.

Unfortunately, customers are usually left in the dark about what debt settlement is really about. For one, debt settlement does not happen overnight. It may in fact drag on for months or even years. You may even have to chase your debt settlement company for status updates, all the while receiving pesky calls from your collectors. Hence it's no surprise to find yourself in deeper financial trouble than you started with unscrupulous debt settlement companies.

If you think it can't get worse than this, do be informed that no debt reduction company can promise the success of your debt settlement. Even when a debt reduction is successful, there are still no promise that you'll settle the debt for 50 cents to a dollar as advertised. Nothing is guaranteed other than the fees you have to pay.

All hopes is not lost, however, because it's stigma aside, debt settlement is a legal, ethical and the fastest way to get out of credit card debt. Of course you should pay what you owe, but why pay when you can settle, right? Settling your reduced debt is a win-win situation for you and your creditors. The question is how much can you reduce.

Different creditors have different sets of "discount structure" when it comes to debt reduction. Depending on who you talk to (different people will offer you different rate) and the nature of your case, you can settle with a reduction anywhere from 25% to 60% of your original amount owed.

There is no reason why you can't do a debt settlement or debt reduction on your own, just as long as you know what you're doing. Do not give up if you are unsuccessful the first time. You just got to keep trying, maybe approaching another person within the company. Different methods works for different creditors, so the more you do this, the better you're going to be. Apart from saving you thousands of dollars on service fee, it is always better to take matters into your own hands than to rely on debt settlement companies.

It doesn't matter if you finally choose to turn to a (truly) professional debt reduction company or decide to attempt to settle your credit card balance by yourself. The bottom line is to know your facts, know your rights and what to expect from such debt reduction deals. The debt help market is laden with scammy agencies that the only person you can trust is yourself.