subject: Personal Debt Relief Options - How Job Loss Affects Your Debt Repayment Options [print this page] Ever since the Federal economy has been affected by recession, it has been found that the rate of unemployment has increased. As people lost their jobs, they found it difficult to repay the debts that they have. This made them defaulters and they started receiving harassment calls from the collection agencies hired by the lenders. Troubled by these collection calls, the consumers filed for bankruptcy.
However, once they filed for bankruptcy, they faced several other problems. They lost their credit score and credibility. Because of this loss of credibility, they failed to get any further credit from the creditors and this will continue for the next 7 to 10 years because of the fact that the report of bankruptcy filing will continue to show up on the credit history for that period of time.
It is because of this reason that people started looking for alternate methods. There are several debt relief options available however, only one among them can eliminate the debt of the consumer by at least 50% or up to 70%. The rest of the repayment options will require full payment of the debts that the consumers have. This will call for monthly payments to creditor for years to come until the debt is completely paid off. This seems to be difficult when you are unemployed.
The best option in that case is the option of debt settlement. The only thing you need to do is to hire a professional debt settlement company and do whatever you are asked to do by the professional negotiator. The negotiator will ask you to go delinquent and as you stop paying, the creditor will wait for 3-4 months and then sell off the debt to a collection agency for as little as 20-30 cents. The negotiator then contacts the creditor and offers 30-50 cents. The creditor agrees because the deal will mean 100% ROI for the collection agency. The creditor will then wipe off the debt that you have by at least 50% and you need to pay only the remaining amount to the creditor. This is how the job loss affects your debt repayment options.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.
Personal Debt Relief Options - How Job Loss Affects Your Debt Repayment Options
