subject: Consumer Debt Help - How You Can Capitalize on This Market and Make a Debt Settlement Deal [print this page] The current market has been the undoing of many individuals and organizations. At the same time however, it has proved to benefit the debt settlement sector. In order to save the money lending institutions from financial ruin the federal government has helped them with stimulus money. Their immediate threat being removed, the financial institutions have passed this benefit to the debtors. The money lending institutions realize that if the debtors are compelled to repay the loans and are unable to do so, they will only be forced to file for bankruptcy. Then the financial institutions will lose all the money given to debtors. In order to prevent this scenario they are offering liberal settlement programs to the debtors.
Not only are the creditors happily accepting requests for settlement, they are also proactively offering this measure to the debtors. The market has suddenly become very conducive for those who wish to avoid bankruptcy and still want some relief in their loans. Now a debtor can approach a creditor either individually or through a settlement company for a debt settlement deal. The creditors then assess the actual paying capacity of the debtors and offer a settlement at an amount much lower than the original amount payable. This negotiated amount can then be repaid either as a lump sum or in equated monthly installments. The creditors also waive off the penalty charges and reduce the interest rate on the negotiated amount payable.
But there are some limitations to the debt settlement program. Only those debtors who have a total debt amount of $10,000 or more are eligible for a settlement program. But on the other hand there are other options for debt relief for debtors who do not qualify for debt settlement. These debtors can opt for debt consolidation in which several high interest loans are paid off with a single low interest one. They can also opt for converting unsecured loans into secured ones. Secured loans have a much lower rate of interest compared to unsecured loans because there is collateral attached to them. In this way debtors can capitalize on the market and make a settlement deal.
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.
Consumer Debt Help - How You Can Capitalize on This Market and Make a Debt Settlement Deal
