Federal Credit Debt Help - How To Stop Collection Calls And Eliminate Unsecured Debt By 50%

Since the fall of the economy in the last few years

, more and more people have needed credit card debt help. The problem as continue to grow as more homes go into foreclosure and there are more lay offs at companies. During this time many companies popped up all over the country guaranteeing help for struggling home owners and consumers. They offered that they would and could eliminate 50% or more of debt and get the consumer on a repayment plan with the creditors. However, many companies were fraudulent and never delivered all that they had promised. Instead they demanded that high fees be paid prior to starting the debt elimination process and then never did any work for the consumers. This lead to even more bankruptcy filings in courts and more lost revenue for creditors.

Consumers were left in an even worse situation because they would fall even farther behind on payments and bills. The collection calls never stopped and some ended up in court because they had law suites and judgments against them that were fled by the creditors. The situation spun out of control very quickly because of the damage these fraudulent companies caused. Consumers had no recourse to get their money back from the companies and were out even more money now. Many companies would be gone, leaving hundreds of people in the lurch and no way to get a hold of them or find out what was happening with their case.

Once the federal government realized all this was happening, they created new rulings that state that no credit settlement company can collect any fees until the debt has been eliminated and reduced. The companies now have to do the work first before they can collect any money from struggling consumers. The federal credit card debt help has eliminated the scam companies that do no work for the consumers or creditors. These companies can not operate because they have no actual skills in the way of debt elimination and reduction. Consumers are now able to safely and effectively stop the collections calls and eliminate unsecured debt by 50% ore more.

Because of the federal credit card debt help, consumers can go to legitimate agencies that will stop the collection calls and reduce the debt. A legitimate agency does all the negotiations with the creditors. The consumer no longer has any contact with the banks or credit card companies and the agency speaks in behalf of their client. They send a letter notifying the creditors that the person has gone into a debt settlement program and this stops the harassing phone calls and letters. It also stops all judgments and law suites against the person too. They then come up with a repayment plan that consumer can pay and works with the creditors to have them agree to it. The debt is legally reduced by 50% or more and the consumer is able to become debt free.

How actually settlement works?

The method is aggressive but simple. The person goes delinquent after being advised to do so by the professional negotiator. Once this happens, the creditor hands over the loan to a collection company and agrees to take only 20-30% of the total money collected. This is a poor deal for the creditor. It is at this point when the creditor gets a call from the negotiator who offers a better deal of 30-50% debt repayment in lump sum and also threatens the creditor that consumer will file for bankruptcy if the creditor declines the offer.

The creditor will generally accept the deal because:

It never wants bankruptcy.

The deal will mean 100% ROI for the collection agency.

The creditor will therefore, eliminate the debt by 50% or more and the consumer then needs to repay the remaining amount of the money to the creditor in one single payment.

This is how collection calls are stopped and the unsecured debt is reduced by 50%.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.

Federal Credit Debt Help - How To Stop Collection Calls And Eliminate Unsecured Debt By 50%

By: smith archer

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