subject: Unsecured Debt Relief Methods - How To Legally Settle Bad Credit Debt [print this page] Unsecured Debt Relief Methods - How To Legally Settle Bad Credit Debt
Debt settlement is one of the most popular methods of debt relief. That is mostly because it is a very safe and efficient method of debt relief. Also, because of the new laws introduced by the federal government the operation has become even more popular.
When doing a debt settlement, you will have to know what to say to the creditor. You must push him around and make him understand that you face bankruptcy if he won't reduce your debt. And bankruptcy is the worse of them all. Once the settlement has been finalized, you just have to agree to the terms and conditions and you will be free of debt. Of course, this is not the best solution and both parties know that. The borrower will have to pay a large price as he will have a black spot on his debt history. The credit card issuer will have a $25,000 loss and further uncertainty because he will not know if the debtor will pay or not. But it is the only real alternative to bankruptcy, which is a disaster in the long term. Of course it is a very good thing that debt settlement is a perfectly legal thing. The contract between you and the creditor is mutually determined and both parties have complete freedom to make as many changes as they want but only if the other party agrees. This is done to prevent the increase of the interest rate arbitrarily. If you use this method you can reduce your debt with up to 60%.
Debt settlement is the best option for filling bankruptcy and is very popular amongst people who are indebted. If you have a large sum of debt, over $10k in unsecured debt, then it is good to use debt settlement. Search the internet or a debt relief network for a good and respectable debt negotiation company so you can begin reducing and be debt free.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
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