America The Bailout Nation - How Consumers Are Trying To Get Bailed Out Of Unsecured Debts

Online, May 16, 2010 (Newswire.com) - America has become the bailout nation. Over the past couple years Americans have witnessed numerous financial institutions getting bailed out of their obligations and not being held responsible for their reckless investments. Many consumers are now trying to get the same treatment from their creditors through a process known as debt settlement.

Debt Settlement is a debt relief option that lets consumers make a deal with their creditors to pay back less than they actually owe. Debt settlement has become more popular over the past couple years in large part due to the "bailout" attitude set in place by the federal government. If these large financial institutions are being bailed out then many consumers believe they can too. While debt settlement is not really a bailout and definitely not sponsored by the government, it is a legitimate way for consumers going through a financial hardship to eliminate some of their unsecured debts. In 2009 the debt settlement industry was responsible for settling over $1 billion in unsecured debts saving debt ridden consumers nearly $600 million.

Getting bailed out of paying back unsecured debt through debt settlement does not come without consequence. Consumers will experience an increase in collection calls and also a drop in their credit score. Debt settlement programs typically last between 2-4 years at which time the consumer will not be making payments to their creditors but rather paying into a savings account until it builds up to an agreeable settlement amount. The average debt settlement is negotiated for 50% of the balance so if a consumer had $50,000 in unsecured debt they would save up funds until they had around $25,000 and then attempt to settle the debt.

The best way to convince a creditor to agree to a debt settlement deal is to convince them you are a legitimate candidate for bankruptcy. Since creditors are likely to receive nothing if the consumer were to declare bankruptcy, most are more than willing to take 50% rather than nothing. When consumers enter a debt settlement program they will not be paying their creditors and therefore most creditors will consider the candidate a legitimate candidate for bankruptcy.

Debt settlement is an aggressive debt relief option and should only be considered by consumers that are experiencing a legitimate financial hardship and have at least $10k in unsecured debt. It is not intended for individuals simply looking to get bailed out of their unsecured debts.

To locate legitimate debt settlement companies it would be prudent to visit a free debt relief network first. These networks qualify the debt settlement companies and make sure they have all the necessary qualifications and track record to help the consumer. Debt Relief Networks also provide free debt relief advice and will give consumers advice on what option is best whether it is debt settlement, credit counseling, debt consolidation, or bankruptcy.

To locate legitimate debt relief help through a free debt relief network check out the following link:

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