Debt Settlement - How New Bankruptcy Laws Have Led To An Increase In Debt Settlements

Online, April 29, 2010 (Newswire.com) - With the recent market crash, a lot of people have been rendered jobless or with a major reduction in salary. The pressure of paying of the bills has increased ten folds. Quite a few people think that the only way out of this financial mess is filing for bankruptcy. What needs to be understood is that this is definitely the very last option. There are other options like settlement programs that can be explored before actually filing for bankruptcy. These settlement programs can help you to get rid of these problems plus it will not mar your credit rating.

With the ever rising interest rate people are finding it difficult to come out of this situation. Even if you have nil balance in your account, you need to pay back what you owe to your lender. But do not opt for bankruptcy; there are other ways to come out of these liabilities. If you do not file for bankruptcy your assets will remain safe. You can negotiate a discount on your loans against these assets.

If your unsecured debt is over $ 10,000 then it will be wiser for you to consider settlement. You can negotiate directly with your credit card company. Otherwise, you can hire the services of a debt settlement company to do the debt settlement on your behalf. You will need to provide them with documents regarding your monthly income, the total outstanding debt on your account and the maximum that you can spend in order to settle your debts. With this information the debt settlement company can proceed with negotiations with your credit card company. You can expect up to 50 % of the unsecured debt to be eliminated after successful negotiations. In some cases 60 % of the debt have been eliminated and the remaining 40% of the outstanding amount can be paid off in one go or through installments as per the agreed terms.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.

http://www.freedebtreductionhelp.com