Credit Card Debt Settlement - Predictions Of Another Recession Has Debt Settlement Deals On The Rise

Online, October 5, 2010 (Newswire.com) - Coming off one of the worst recessions in United States history there are more people currently in credit card debt than ever before. Credit card companies have been recklessly lending credit to the American public and collecting millions of dollars in interest payments. Now they are left with millions of Americans who simply cannot afford to pay back their debt. In an effort to prevent bankruptcy filings, credit card companies and other creditors of unsecured debt are making a significant amount of debt settlement deals.

With more and more consumers on the brink of bankruptcy they are finding it difficult to collect from their delinquent accounts. Delinquent accounts are rising at unprecedented levels and the last thing that creditors of unsecured debt want you to do is declare bankruptcy. They know that if you declare bankruptcy they will likely receive none of their money back. Knowing this, they are looking for other ways to prevent consumers from filing bankruptcy and still collect some money.

One of the ways in which credit card companies collect their funds is known as credit card debt settlement . Many consumers that are experiencing a financial hardship and have at least $10k in unsecured credit card debt are opting for debt settlement.

Debt settlement is where consumers are able to pay back a percentage of their credit card debt and the creditor agrees to forgive the rest. This is typically the last option before filing bankruptcy. Creditors will agree to take partial payment if they believe the consumer is a legitimate candidate for bankruptcy because if the consumer were to declare bankruptcy they would likely receive nothing. 50% of their money is better than nothing for most creditors of unsecured debt.

The easiest way to locate legitimate debt settlement companies is to use a Free Debt Relief Network . These networks will ensure that the debt settlement company you are provided is legitimate and is a respected member of all the regulatory commissions such as The Association Of Settlement Companies and the BBB. Most free debt relief networks will provide a free debt consultation to help the consumer determine what debt relief option is most appropriate.

There is no magic bullet to get out of debt however debt settlement can a good option for consumers who are experiencing financial hardship and have at least $10k in unsecured debts.

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

Free Debt Relief Advice