Credit Debt Relief - How New Laws Help Consumers With Debt Settlement
Credit Debt Relief - How New Laws Help Consumers With Debt Settlement
With so many people losing jobs or suffering from major pay cuts, credit card debts have become a major concern for most of the consumers. Some were forced to file for bankruptcy as there was little they could do about their debts. In order to give relief to the common man the debt settlement laws have been made more consumer friendly.
Any customer with ten thousand or more in unsecured debt is now eligible for debt settlement. This is a huge relief as a recent survey has shown that an average person in America has at least nine thousand dollars in credit card debt. Hence a huge population can qualify for this debt relief program.
In this process both creditor as well as the debtors agree to settle the account for an amount which is much less than what was due. This is a win-win situation for both as the debtor gets a chance to get out of debt by paying only a part of the entire loan amount whereas the creditor gets to recover a part of the money which would have not been possible had the creditor filed for bankruptcy.
The procedure involved in debt settlement is simple. The debtor needs to convey to his creditors that his current financial condition is bad and he will not be able to pay back the entire loan hence he would like to go for a debt settlement. He will have to offer a certain amount of money as down payment to get a settlement. Generally this down payment can range from 40% to 60% of the total debt amount.
There are good debt settlement companies who can get a good relief amount for their customers. A customer can expect a debt reduction from 40 % to 60% of the debt amount.
Their are several debt relief options available in this market so it would be wise to speak with a debt relief specialist to determine which option makes the most financial sense for you. Whether it is credit counseling, debt settlement, debt consolidation, or bankruptcy, a debt relief specialist will be able to steer you in the right direction.