Why Debt Settlement Is Becoming More Popular Than Filing For Bankruptcy

Online, June 8, 2010 (Newswire.com) - Debt settlement has recently become main stream as more and more consumers are finding themselves on the verge of bankruptcy. Debt settlement is basically the last stop before bankruptcy. Instead of paying their creditors, consumers pay into a debt settlement savings account until they build up a sufficient balance to satisfy their debts. The average settlement in 2009 was negotiated for a 50% savings. The consumer's credit will definitely take a hit however many consumers are willing to accept this in order to get rid of their unsecured debts.

With bankruptcy laws becoming more strict over the past two years
debt settlement has gained more 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 is not for everyone. It is 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 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 into 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.

If you are struggling with paying back your credit card debt or any other unsecured debts there is legitimate help out there. Debt settlement usually makes financial sense for consumers with over $10k in unsecured debt. There are also other options available. To talk with a
talk with a debt relief specialist for free help check out the following link:

Free Debt Settlement Help

Or Call - 877-853-6466