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We are currently in talks with a debt reduction company. They are claiming that they can reduce our debt by 50%, but for the next two years our credit score will suffer and we will be hassled b creditors. Is this a viable option to get out of debt as quickly as possible?

If you want to get out of debt as quickly as possible, debt reduction through a debt settlement company is often the route many people take. There are never any guarantees in the debt settlement process but it is possible to reduce the amount you owe by 50% (sometimes more). The drawbacks they mention are also true but I would say the following:

1. Yes, you will likely still get calls from creditors
2. I would say that your credit score will likely be damaged for longer than the 2 years they cite. Every situation is different but understand that the settlement process entails you ceasing to pay your bills for a period of time and that will have a lasting impact on your credit score. It will likely take longer than 2 years for your credit to recover.

In short, setttlement is a relatively quick way (still years) to get out of debt and for many people it’s their only option other than bankruptcy. But please understand that there are drawbacks and be careful with companies that play those down just to get you in the door.