Debt Relief Solutions - Viable Alternative To Bankruptcy Filing
Ever since the Federal economy was hit by recession
, thousands of Americans became unemployed. They failed repeatedly to repay their debts and as a result, the lenders started harassing them with collection calls in an attempt to collect their money. These harassment calls forced several people to file for bankruptcy. Though these people managed to get rid of their debts in full, they lost their credibility and failed to get any further credit from the lenders. This condition will stay for the next 7-10 years which follow. It is because of this reason that people are now looking for alternative debt relief solutions.
If you are one among those who are looking for viable alternatives to filing bankruptcy then, debt settlement is the best option that you can have. Settlement requires that you must have an overall credit card score of $10k or more. Also the debt needs to be consolidated so that the process of settlement becomes less time consuming and less costly. Yet another reason for consolidation is to ensure that the overall loan does not fall short of $10k.
The next thing that you need to keep in mind is that you need to hire a professional debt settlement company which is TASC certified. Also, make sure that the company has a proven track record of successful debt negotiations. Once you hire a professional company, the negotiator from the company will ask you to stop paying the creditor. This is necessary because settlement also requires you to prove that you are in financial hardship. After you stop paying, the creditor will wait for 12-16 weeks and then sell off the debt to a collection agency. The collection agency pays only 20-30 cents to the creditor for each dollar collected from you. This deal is tracked by the negotiator who then contacts the creditor with a new deal of 30-50 cents and also threatens the creditor that you will file for bankruptcy in case the creditor disagrees.
The creditor agrees on the grounds that the deal will mean 100% ROI for the collection agency and also because it never wants you to file for bankruptcy. The creditor then eliminates at least 50% of the debt or even up to 70%. You will then have to repay the remaining amount of the debt to the creditor in one single payment. This is a viable alternative to filing bankruptcy.
Debt settlement is the best alternative to filing bankruptcy and the new regulations have made the process a much better deal for consumers.
Debt Relief Solutions - Viable Alternative To Bankruptcy Filing