subject: Debt Settlement Programs - How The Government Is Making Debt Negotiators Legitimate [print this page] . People were using credit cards more and more often and managed to get a big amount of unsecured debt. The government had to do something to help in such a situation and debt settlement was implemented. The option was around for 20 years but people had stopped using and most forgot about it. Bankruptcy was the most popular option people and it made a lot of people a lot worse than before. With the economy being weak people were not allowed to get another loan after filing for bankruptcy and many ended up on the street.
Fortunately, the government started popularizing debt settlement through the creditors; they got the money for the amount they reduced from a person's debt. This was a very good deal for most of them because people who opted for bankruptcy gave them nothing back or the assets the court sold to come up with the money were no longer of a big value. So the creditors encouraged their clients to choose debt settlement over bankruptcy. It was a good option for clients too because the credit score remained in a normal value and their situation got better instead of worse, like it happened to those choosing bankruptcy.
The government also made the laws for bankruptcy harder and people were not always allowed to choose this option. Of course, those who really need it were still able to use it but there were a lot of people abusing it. Many rich people used it to get more money by creating fake businesses that suddenly went bankrupt. They made a lot of debt on those businesses and then filed for bankruptcy.
The Federal Trade Commission also adopted a law recently that stated people were no longer obliged by the companies to pay an upfront fee. This made the settlement option even more secure and trustworthy because many companies got a lot of money from people pretending to be settlement companies. So, if you want a good option to make sure that you keep your financial situation in a good condition, debt settlement is the right thing for you.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link:
Debt Settlement Programs - How The Government Is Making Debt Negotiators Legitimate
