The current circumstances surrounding consumer credit card debt are devastating. As a matter of fact, credit card delinquency is increasing at shocking levels, with more and more people falling behind on their monthly payments and a significant increase in accounts with over 90 days of missed payments.

If you're facing credit card delinquency you're certainly not alone. Seventeen large card issuers report that payment delinquencies of 30 days jumped 26 percent from 2006, to a total of $17.3 billion. Delinquencies of 90 days or more were up 50 percent, and defaults, where the lender writes off the debt as uncollectable (charge-off), rose 18 percent to $961 million.

Faced with the current mortgage crisis and decreasing home values, and subsequently the inability to borrow against their home's equity to eliminate credit card debt, what are consumers to do?

Many debt relief options are being scrutinized due to unethical business practices by some companies in the debt settlement industry. If you're considering debt settlement should you be concerned? Absolutely. While debt settlement has assisted many individuals and families, there are warning signs to look for when considering this option.

For instance, if you're contemplating hiring a company to represent you, go slow and exercise caution. A great deal of debt settlement firms require that you place funds into a "trust" account each month, from which they withdraw their fees - all without having yet performed a service. Keep in mind, these debt settlement companies are taking their fees while your creditors are not being paid, and oftentimes those fees are several thousand dollars.

That being said, I completely understand that many people are simply facing a deficiency each month, and have not received any assistance from their creditors, even after numerous attempts have been made to receive some type of relief through reduced payments and/or interest. As a result, sufficient funds just don't exist to keep up with monthly payments and it's time to make a choice between bankruptcy and debt settlement. Obviously most people resort to bankruptcy as a last resort and, therefore, instead opt for debt settlement.

If you feel that you're at the end of your rope and debt settlement may be the right option for you, please understand the following:

-Creditors will not negotiate reduced payoff balances until your accounts are sufficiently delinquent. Of course, if you're buried deep in debt this probably is not a concern, however, it's important to have a complete understanding of the requirements and procedures used during the process of debt settlement. For additional information regarding debt settlement, click here

-If you're "shopping" around for a debt settlement company to represent you during the negotiation process, take the necessary steps to find a company that works on a contingency basis and doesn't require its fees up front. Also, it's a good idea to resist hiring a company that wants to set up a trust account; rather, if you're setting funds aside for the purpose of debt settlement, do so by opening a separate checking or savings account on your own, and don't allow the pressure of an overzealous sales person to convince you otherwise. And finally, take a few extra moments to check the Better Business Bureau rating of each company you're considering; as you know, even if a company is not a BBB member, if complaints have been registered you will find this information on the BBB website.

-Debt settlement is an excellent alternative to bankruptcy, and can assist in reducing your debt by 40%-60% - legally and ethically; but your own personal situation plays the most significant role in determining if you're a good candidate for this form of debt relief.

Finally, it's important to remember that eliminating debt is about more than just choosing the right company and/or the right solution - it also includes establishing good spending habits for the future. If you've never learned to budget, now is the time. Set realistic goals to eliminate debt so that your future goals can include life's luxuries without accumulated debt.

Marie Megge is a consultant in the credit services industry. Over the past several years she has assisted many individuals in resolving their debt-related matters. For more information regarding credit and debt visit