Personal Debt Relief Options - Limitations on Consumer Debt Relief
Thousands of people are looking for personal debt relief options
. This happened because the American economy was hit by recession and thousands of people lost their jobs. These people failed to repay the debts that they have and became defaulters. As they became defaulters, they started receiving collection calls from the creditors. Because of these harassment calls, they filed for bankruptcy which caused even more problems. The consumers lost their credibility and failed to get any further credit from the lenders for the next 7-10 years which followed. To avoid these problems, the consumers looked for other personal relief options. The most popular of the several debt relief options available for the consumers is the option of debt settlement.
However, if you are looking for personal relief options, you must know that there are several limitations on consumer debt relief. Although these limitations exist, people are still looking for these relief options because the problems which are associated with bankruptcy can be avoided with these options. The greatest limitation on the consumer debt relief is that the consumers can get only a partial relief from the debts. The maximum amount of debt that can be eliminated is up to 70% of the total amount.
The next limitation is that the minimum amount of debt that a consumer needs to have in order to get a settlement deal is $10,000. Anything less than this will not work. Also the debt has to be consolidated in one place. You cannot leave the debt scattered over various cards. Yet another limitation is that of finding a proper relief company. This is because of the fact that the debt relief industry is full of shady companies which charge the consumers with non-refundable upfront fees and then finally come up and say that the negotiation process with the creditor failed. They actually don't try to eliminate the debt that the consumers have. Instead they simply make a fool out of the consumers and cheat them. It is therefore very important to select a proper debt relief company. The best way to do so is to get in touch with a debt relief network which has a complete list of the most authentic relief companies which are operating in the market!
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.
Personal Debt Relief Options - Limitations on Consumer Debt Relief