Frankly, I used to be very broke about 2 years ago when I was barely trying to be independent with my blogging business. Gladly, I never had to get a job after I got to a point where I was making enough money with blogging. Well, during those times, literally hundreds of debt resolution services called me on a daily basis. I always turned them down because what they “don’t” tell you is that having your debts settled with the credit card companies WILL LOWER YOUR CREDIT SCORE.
Of course, if you owe like more than $100,000 AND you have no way of paying them back EVER AND your interests are higher than $1000 a month, THEN you might want to really settle your debt by yourself (remember, credit card companies are always willing to negotiate if you talk to the managers, especially if you tell them there’s no way you can pay them back) or use one of the debt settlement services.
My credit score is still bad because I had about 6 months of straight late payments or no-payments due to the fact that I was trying to barely get by month to month but in the end, I found a way to pay them back. (and I am STILL paying) I won’t regret my decision though, freedom I have now for that risk is greater than any money can pay for, blogging for a living.
Anyways, there’s also a good book Debt Cures you can read up on that shows you how to negotiate with credit card companies yourself, lower your APRs, and more.
Remember, credit cards are great to use to build your credit. I am not saying not to use your credit cards, just keep a good balance check on a weekly basis so you are only spending as much as you can pay.