Consumer Debt Relief - How Consumer Debt Settlement Deals Go Down

Debt settlement is a widely heard option for debt relief. A wide range of deals offered, makes it so popular, the settlement companies claim to:

- Eliminate debt by a significant percentage, 50-70 percent. - Lower the interest rate on the credit card. - Make a single monthly payment. - Avoid harassment from credit card companies and collection agencies. - Last but not the least avoids bankruptcy.

The federal law has defined strict policies for bankruptcy, making it a tough choice for people. They must undergo the training to fully understand the eligibility to declare bankruptcy and it's after effects. The various code of bankruptcy under Chapter 7 and Chapter 13 is clearly explained to the debtor followed by a confirmation if his financial status is well within the scope to file bankruptcy. Debtors who continue to have a job or own few assets are likely to be refused bankruptcy. Under such circumstances it is nearly impossible to get rid of debt. If you owe an unsecured debt of $10000 on credit card at an interest rate of 33.13%, and manage to pay only the minimum monthly payment, it might take you 20-30 years to get rid of the whole debt. You might delay the full payment due to other priorities in life, but trust me; it is crazy to pay so much for such a long duration due to an unfavorable condition in your life.

Debt settlement is definitely a preferred option for most of the people under enormous debt. It would not be wrong to say, the settlement fees is indeed high, close to 15-18% of the debt, but if you pay less than 50% of the total debt, including the fees of the debt settlement company, it is worth the choice. Debt settlement might or might not guarantee a spot less credit score, but there is always an option to improve the credit score after the debt has been paid. Debt settlement program advices you to stop making any payments to the creditors, instead save it in a trusted account. They utilize the time and money to negotiate with the creditors to reduce the debt. Most of them are successful in achieving the waiver and pay the credit card company a lump some amount and set you free of debt. It is important to note that such a deal helps you settle the debt in 2-3 years paying only 30-50% debt instead of slogging for some 20-30 years. The creditors can choose to notify the credit bureau as "settlement" or "paid in full" on your credit score, which again depends on how good the negotiation has been done, the responsibility lies in the hands of the debt settlement company. Besides, an experienced and expert company would handle the calls from creditors and collection agencies right from the beginning, to avoid harassment to their customers.

Finding the right debt settlement firm is the most critical task and needs to be done with utmost care.

Finding legitimate debt settlement companies is not that difficult but consumers must know where to look. It would be wise to utilize a debt relief network that will qualify the companies for you and ensure that they are legitimate and have proven themselves. To locate the top performing debt settlement companies in your state check out the following link: