Because the average American consumer carries nearly $8,000 in debt, there has been a growing interest in quick and easy debt reduction methods in recent years, particularly in the aftermath of the recent economic crisis, when so many households were facing financial hardship, reduced income, and other money-related difficulties. In this environment, the controversial debt settlement industry has flourished, with literally thousands of firms springing up in little more than a decade's time. However, before you agree to sign a contract with a debt reduction company, it is important to carefully consider all of the possible implications of such a move. According to personal finance experts, your credit score is likely to sustain severe damage if you follow the guidelines that most debt settlement companies impose. Furthermore, research has shown that the fees and charges required by many of these firms are disproportionately high, which can often impede the progress of your ability to pay off the principal of your unsecured debt.