The Debt Settlement Industry Responds To Misleading Ads - The Truth About Debt Settlement

Online, April 23, 2010 (Newswire.com) - The process of debt settlement has been around for nearly 10 years however it has never been so mainstream amongst debt ridden consumers. Debt settlement is designed only for individuals with at least $10k in unsecured debt that are legitimately experiencing a financial hardship. For consumers are struggling to make their monthly minimum payments and want to avoid bankruptcy, debt settlement can be a legitimate option.

The debt settlement industry however has gotten a bad rap lately mainly because of unqualified companies popping up making bogus claims and taking large upfront fees from consumers. These unethical companies put a black cloud over the entire industry however it is important that consumers not believe everything they read online and actually take time to analyze the facts.

The truth of the matter is that debt settlement serves as a middle ground between collectors and debt ridden consumers. The debt settlement companies under TASC (The Association of Settlement Companies) settled over $1 billion in unsecured debt in 2009 alone. This resulted in $400 million being collected for various creditors who probably would not have received any of this money if the debtors were to declare bankruptcy. Not only did debt settlement collect money for creditors but it also saved consumers $600 million in 2009. With the American consumer continuing to struggle with debt there is no doubt that debt settlement serves as an important tool for both creditors and consumers.

Before jumping right in to a debt settlement program it is very critical that consumers know where to locate legitimate debt settlement companies and avoid those that may not have your best interest in mind. The first and most important thing to check is to see if the debt settlement company is a member of TASC. All legitimate debt settlement companies will be a member of TASC and if they are not it would be wise to look elsewhere. The easiest way to locate TASC certified debt settlement companies in to visit a free debt relief network. A debt relief network will do further investigation and provide consumers a free debt consultation to determine what debt relief option is best for your financial situation.

To locate a legitimate debt settlement company in your area for some free debt help visit FreeDebtReductionHelp.com: