subject: Personal Debt Relief Programs - Why Debt Settlement is Usually Preferred Over Bankruptcy [print this page] A few years back people did not have many debt relief options at their disposal. The only way to get rid of massive debts was to declare bankruptcy. This was the best way of erasing all the debt at once. However this also had long lasting effect on their financial future. But this was a no win situation for all the parties involved. It was a total loss for the financial institutions, even the government was affected as it was very bad for the economy at large.
As people understood, filing for bankruptcy only provided a temporary solution for a big problem. Once a person files for bankruptcy their credit scoring takes a downward plunge. It is very difficult for them to acquire another loan in the near future. The credit rating takes a period of eight to nine years to start looking up again. Hence opting for bankruptcy completely destroys your financial future. After incurring heavy loss due to bankruptcy, the financial institutions and the government mutually agreed to come up with other debt relief programs. Amongst other debt relief programs settlement programs are the most effective and hence most popular.
Debt settlement is a process in which you offer to pay a certain amount of the outstanding debt to the financial institution. If the financial institution agrees then you can get a waiver of 50 percent of the outstanding amount. Good debt settlement companies can get you a discount of over 60 percent of the outstanding amount by means of negotiation. You can either pay off the remaining debt by cash if you have it or by means of easy installments.
Settlement has gained popularity over filing bankruptcy. In case you are looking for relief from massive debt then you should contact some good, legitimate debt settlement company. Do not opt for bankruptcy as professional debt settlement companies can really help you out.
For the millions of Americans who are at least $10 k in unsecured debt, it would be financially prudent to consider the debt settlement option. Creditors are very worried about collecting their debts and legitimate debt settlement companies know exactly what methods to use to get your creditors to agree to eliminate a certain percentage of your unsecured debt.
Personal Debt Relief Programs - Why Debt Settlement is Usually Preferred Over Bankruptcy
