Debt Settlement – Why The Debt Settlement Industry Is Growing So Fast
America has become a bailout nation. At first it was only large financial institutions that were receiving financial bailouts. Billions of stimulus dollars were injected into the American economy and now the debt settlement industry is capitalizing on this to promote consumer bailouts. They argue that since most large creditors received bailout money they are more willing to accept reasonable debt settlement offers.
Consumers should understand that the government stimulus money has only indirectly affected the debt relief industry. The government has not provided any money directly for the purpose of consumer debt settlements. The government has however flooded the market with stimulus money and given creditors incentives including major tax breaks when they make a debt settlement deal.
With bankruptcy laws becoming more strict over the past two years this option has gained more prevalence amongst consumers. In 2009 alone, the debt settlement industry was able to settle $1 billion in unsecured debt. This resulted in $400 million being collected to creditors and approximately $600 million being eliminated off the books of consumers. After looking at the facts it is hard to argue that settlement does not serve an important role in the debt relief industry.
Debt settlement is not for everyone. It is only intended for individuals that are legitimately experiencing a financial hardship and have Kamagra jelly at least $10k in unsecured debt. They must prove to their creditors that they are unable to pay back the entire balance but are prepared to pay back at least a percentage of the overall balance. If creditors believe the consumer is financially incapable of paying back the loan, then most of the time they will accept the settlement offer because if the consumer were to declare bankruptcy they would be left with nothing.
The debt settlement industry in America is growing so fast that it has started to get increased scrutiny from members of congress. Unfortunately there have been several rogue companies that enter the market every day and pose as legitimate companies when in reality they are not. These companies have given the entire industry a black eye however there are legitimate companies on the market that can actually fulfill their promises.
If a consumer wants to find legitimate debt relief companies the best place is through a debt relief network. The top debt relief networks make sure the settlement companies are certified and have a proven track record in settling consumer debt. They will make sure the debt settlement company is an accredited member of The Association Of Settlement Companies (TASC) and have the legal authority to negotiate settlement deals.
Author Bio: To speak with a debt relief specialist for a free consultation check out the following link. They will go over all your debt relief options and help you decide which option is best for your financial situation.
Or Call: 877-853-6466
Category: Finance/Personal Finance
Keywords: debt relief, debt settlement, debt relief programs, eliminate debt, get out of debt, credit card debt
