You settled a debt instead of paying in full will stay on your credit report for as long as the individual accounts are reported, which is typically seven years from the date that the account was settled. Unlike with bankruptcy, there isn't a separate line on your credit report dedicated to debt settlement, so each account settled will be listed as a charge-off.

Rolling all of your debts into a single loan is a good idea - in theory. In fact, it can be a great idea.

If you'd asked me a few years ago about debt settlement companies, I probably would have told you to avoid them.

After explaining why you're in trouble, ask the creditor if the company would be willing to accept a smaller amount. Start negotiations at about 30% of the total amount due, with the end goal of paying 50%.

No company can promise an end date, but if you have multiple debts, the first one should be settled within a year.

You must be sure - and I mean absolutely positive - that you have the willpower to pay off those credit cards and not use them again.

Get your friends involved. Let your shopping buddies know that you're on a tight budget, and they can help you out when your willpower starts to weaken at the mall.