Credit Card Debt Relief - The Debt Settlement Industry Defends It's Legitimacy On Capitol Hill

Online, April 26, 2010 (Newswire.com) - Representatives from the debt settlement industry recently appeared before a congressional hearing where they were interrogated by members of congress. The debt settlement industry has grown significantly over the past couple years and a few unethical companies have given the whole industry a bad name. The industry as a whole has been largely unregulated which has led to several unethical businesses being formed. There is no doubt that there are shady debt settlement companies out there but after analyzing the facts it is hard to argue that debt settlement is not an important service for both the creditor and the consumer.

With bankruptcy laws becoming more strict over the past two years debt settlement programs have gained significant prevalence amongst debt ridden consumers. In 2009 alone, the debt settlement industry was able to settle $1 billion in unsecured debt. This resulted in $400 million being collected to creditors and approximately $600 million being eliminated off the books of consumers. After looking at the facts it is hard to argue that debt settlement does not serve an important role in the debt relief industry.

Debt settlement programs are not for everyone. They are only intended for individuals that are legitimately experiencing a financial hardship and have at least $10k in unsecured debt. They must prove to their creditors that they are unable to pay back the entire balance but are prepared to pay back at least a percentage of the overall debt. If creditors believe the consumer is financially incapable of paying back the debt, then most of the time they will accept the debt settlement offer because if the consumer were to declare bankruptcy they would be left with nothing.

The debt settlement industry in America is growing so fast that it has started to get increased scrutiny from members of congress. Unfortunately there have been several rogue companies that enter the market every day and pose as legitimate debt settlement companies when in reality they are not. These companies have given the entire industry a black eye however there are legitimate debt settlement companies
on the market that can actually fulfill their promises.

If a consumer wants to find legitimate debt relief companies the best place is through a debt relief network. The top debt relief networks make sure the debt settlement companies are certified and have a proven track record in settling consumer debt. They will make sure the debt settlement company is an accredited member of The Association Of Settlement Companies (TASC) and have the legal authority to negotiate debt settlement deals.

To locate legitimate debt settlement companies through a top debt relief network check out the following link:

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