Debt Relief - Prefer Debt Settlement Over Touching Your 401K

Do you know that it is impossible to lead your financial life without creating even a single asset? You may lease your car and your house. You may not have purchase too many fancy household equipments. You may not have invested money in insurance. You may have zero balance in all your bank accounts. You may owe all your money to your credit card issuers and other unsecured lenders.

Despite all this, you can claim that you have secured at least one asset- your retirement fund. This is something that is a form of a compulsory saving that each and every productive American has to indulge in.

There are many persons who get excited when they hear about this asset. Their instant reaction is to liquidate this asset to overcome their debt problems. However, that is the worst mistake that you can make. The primary reason why the government has made this fund a compulsory saving is that it does not want individuals to utilize this money immediately.

If the individual ends up as a bankrupt individual in his or her old age, it'll become the responsibility of the government to take care of such elderly persons. The government is merely trying to avoid such a problem by making saving compulsory. Instead of utilizing your retirement fund, you should use your head and check out debt relief options.

Once this asset too comes down to zero, and considering your past record it certainly will, you will have no other asset to help you out even after you opt for bankruptcy.

When credit card issuers are prepared to opt for debt settlement, why should you check out any other remedy? What is debt settlement all about? You just have to promise prompt repayment of the debt and the lenders will offer a 50% to 70% waiver. The money waived need not be repaid. Only the balance amount owed to the lender has to be repaid on a monthly basis for a period of one to two years.

Why is the credit card issuer offering such a facility? Lenders have realized that pushing borrowers beyond a limit is only going to lead to bankruptcies. A few bankruptcies may be good deterrent on other card cardholders. However, millions of bankruptcies only mean that the intimidating tactics of credit card issuers is not working. Lenders are realized that and are offering generous waivers instead of resorting to pressure tactics.

If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below: