The right time to settle debts is when you can't afford to pay even the minimum amount on your unsecured debts. You can settle and reduce your credit card or other forms of unsecured debts through debt settlement. You can negotiate with your creditors or you can leave the job in hands of the debt negotiators to shrink your debts.
You might have seen tons of advertisements of debt settlement companies that promise to show you the route towards a debt free life. The companies pledge to negotiate with creditors and cut down your debts. Although it is possible to easily pay back your creditors with the help from a debt settlement company, yet it is true that you can persuade your creditors to accept a partial payment on the debt. All you need to do is check out the do it yourself debt settlement steps.
However, if you don't feel comfortable negotiating on your own, get help from a settlement company to negotiate with creditors or collection agencies on your behalf. Here's an interactive that explains how to negotiate and pay off debt with help from a settlement company.