subject: Getting Out of Debt - Advice For Obtaining Debt Relief When Unemployed [print this page] Getting out of debt during the times of recession is very important. If you wait for the economy to get better, your problems will simply increase. After the recession, thousands of Americans lost their jobs and they failed to repay the creditors. They became defaulters and started receiving collection calls from the creditors. Eventually, the debtors filed for bankruptcy so that they can avoid collection calls and get rid of the unsecured loans that they have.
However, filing bankruptcy invited further troubles for them. Once they filed for bankruptcy, they lost their credit score and credibility. As a result, they failed to get any further credit from the creditors for the next 7-10 years. This is because of the fact that the report of bankruptcy filing continued to show up on the credit history for that time frame. Thus, getting out of debt with the help of bankruptcy filing did not turn out to be very fruitful. It is therefore advised that if you are unemployed, you must try getting out of debt using other debt relief options. Debt settlement is by far the best option that can help you to eliminate at least 50% of the debt that you have.
Settlement requires that you must have an overall unsecured debt of $10K or more. Also, the debt must be consolidated in one place and you must be able to able to prove that you are in financial hardship. If you are unemployed, proving this will not be a difficult thing. All you need to do is to hire a reputable debt settlement company. According to the new debt settlement laws, you need not pay upfront fees to the company that you hire. The negotiator from the company that you hire will advise you to stop all the payments to the creditor and go delinquent. Once you do so, the creditor will wait for 12-16 weeks and then sell off the debt to a collection agency for as little as 20-30 cents against each dollar. The negotiator knows when this happens and then contacts the creditor with a better deal of 30-50 cents. The creditor agrees to the deal because of the fact that new deal will mean 100% return on investment for the collection agency and eliminates at least 50% of the debt that you have. Once the negotiation is complete, the settlement company will charge the service fee. This is how you get out of debt when you are unemployed.
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.
Getting Out of Debt - Advice For Obtaining Debt Relief When Unemployed
