Debt Settlement involves negotiating lower interest rates or reduced outstanding balances on the debts so that the debtors can get out of debt faster. However, this financial solution sometimes may not be the right option.
Let's see the following scenarios where it is not right for you to apply this particular solution.

When you don't have a dependable source of funds to apply for settlements.
Bear in mind that once your creditors and you have agreed to the settlement arrangement, you will be required to pay the amount agreed within a time frame. If you have doubts about your ability to look for the fund needed, you are advised to consider other option.

When you need to settle your debts less than 24 months
In general, the whole debt settlement process takes about 2 years. For some people who are in debt, there is urgency for them to solve the debts faster. The longer they drag, the higher the risk they face. Their creditors would take them to court for legal proceeding. Under this circumstance, filling for bankruptcy is in fact a better choice.

When you are currently having an immediate financial need
Before settling your debt, you have to evaluate your financial position as well as your needs. You must take care of your immediate financial need, if any. For instance, it is a need for you to purchase a transport in order to execute your work. Will you still use all your available cash for settlement? Purchasing transport should be your priority. Hence, never consider debt settlement when you have other more important financial commitment.
If you fall under any of the above mentioned category, you are advised to change your mind and look for other way out.