subject: Personal Debt Relief Options - The Impact of Unemployment on Consumer Debt Options [print this page] Personal debt relief options have stolen the lime light and the option of bankruptcy has been thrown off the stage! Thanks to the increased rate of unemployment which is the outcome of the recession that has struck the US economy. As thousands of people have lost their jobs, they have failed to repay their creditors and became defaulters. They started receiving harassment calls from the lenders and just to get rid of these calls and the unmanageable unsecured debts, they filed for bankruptcy.
However, filing for bankruptcy did not make a huge difference. It is true that the consumers did not have to pay a single penny to the lenders but, after the successfully filed for bankruptcy, they lost their credibility because of reduced credit scores. They failed to get any further credit for the next 7-10 years because the report of bankruptcy continued to show up on the credit history during that period of time.
It is because of this reason; the consumers started looking for alternative personal debt relief options. Debt settlement was by far the best that was available in the market. However, settlement requires two conditions to be fulfilled. Firstly, the overall unsecured debt that the consumers have must be at least $10,000. It cannot be less than that and that the debt must be consolidated in one ingle place. Secondly, the consumer must be able to prove financial hardship. What else can serve the purpose better than unemployment? It is easier for the consumers to prove that they are in financial trouble because they can easily prove that they are unemployed.
Thus the personal debt relief option for the consumers received a boost because of the problem of unemployment. All that the consumers are required to do is to hire a professional and reputed debt settlement company and do whatever is advised by the professional negotiator from the company. The negotiator will get in touch with the creditor and try to eliminate the debt you have by at least 50% through negotiation. Thus it can be said the personal debt relief options received a boost because of unemployment.
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 - The Impact of Unemployment on Consumer Debt Options
