subject: Debt Settlement Relief - A Legal Loophole That Allows Consumers to Eliminate Credit Card Debt [print this page] Debt Settlement Relief - A Legal Loophole That Allows Consumers to Eliminate Credit Card Debt
The debts are of two types that are secured and unsecured debts. The secured debt is debt in which creditor will give you money against some asset of yours. But in unsecured creditor does not have any collateral against the loaned amount. Due to this creditor do not have way to recover their money once you get the bankrupt status. The creditors are giving debt settlement relief to their costumers that are more prone to file bankruptcy.
The government has given the stimulus package to the creditors so that they can survive in the hard business condition. They are getting the extra cushion of the stimulus money to give their costumers the debt settlement relief. You are eligible to get the settlement relief if you have more than ten thousand as unsecured debt. The creditor will decide whether you will get the settlement relief or not. But you can always scare them or force them to consider you for the settlement relief. Stop paying the outstanding credit card bills and if you receive the call from your creditor office you can threaten them that you are planning to file bankruptcy.
More over the collection agency or creditor cannot do much legally to recover the money from you. There is not much legal support for the unsecured debt. Only your credit score is reduced if you become defaulter. You can smartly get the settlement relief from your creditor. Ask your creditor to prepare the consolidated debt. The consolidated debt will merge all your debt into single account and will help you to manage it. You can get the debt reduction on all your debt. If you are good in negotiation skills and have sufficient knowledge of the financial system then you can get some 30%-35% of reduction.
You should always use the debt relief firms to get the reduction on your behalf. They are very good in negotiation skills and have contacts in the creditor's firms. All this will help to get the extra debt reduction for you. This is observed that legitimate debt relief firm get debt reduction of 60% for their customers.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers must be experiencing a legitimate financial hardship and have at least $10k in unsecured debt to qualify for most programs. Check out the link below to locate legitimate debt settlement companies in your area for a free consultation.
