The American consumer has been bombarded with ads for debt relief programs over the past couple years which promise to eliminate a significant portion of their unsecured debt. So how do these programs work and do they make financial sense?

The debt relief programs that consumers hear on television and the radio are mostly debt settlement negotiation programs. Debt settlement is where consumers stop making payments to their creditors and instead pay into a savings account until enough funds are built up to get an agreeable settlement. The average settlement in 2009 was negotiated for 50% of the overall balance. This option is only intended for consumers who are experiencing a financial hardship and are on the verge of bankruptcy.

So why would creditors agree to these settlement deals. The answer is simple. Creditors of unsecured debt are aware that if the consumer were to declare bankruptcy they would likely receive little of their money back. Therefore, if a creditor believes the debtor is a real candidate for bankruptcy it is in their best interest to make a deal and get back some of their money.

So how do consumers convince creditors that they are a legitimate candidate for bankruptcy? They go delinquent and stop making regular payments. This is typically the hardest decision that consumers make but it is necessary in order to receive a favorable settlement offer.

Debt settlement negotiation has become a legitimate way for consumers to eliminate unsecured debt and avoid bankruptcy. While this debt relief option does carry inherent risks such as being sued or a getting a lower credit score, it can pay off big for those who stick to the program. In 2009 along the settlement industry settled over $1 billion in consumer debt. This resulted in approximately 600 million being eliminated off the books of debt ridden consumers.

Debt settlement negotiation is an aggressive option and does not make sense for everyone in debt. Consumers must be experiencing a legitimate financial hardship and have at least $10,000 to qualify for most debt negotiation programs.

To clear debt, American consumers are working in different ways and programs. From credit counseling to bankruptcy, getting out of debt seems to be a national goal cialis cheap these days. The era of free spending on numerous credit cards is over, and while many are paying the prices for these old habits, new ones are being developed.

If consumers are struggling with paying back credit card debt or any other unsecured debts there is legitimate help out there. Debt settlement usually makes financial sense for consumers with over $10k in unsecured debt. There are also other legitimate options available such Brand Viagra as credit counseling. To talk with a debt relief counselor for free help check out the following link below:

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.

Free Debt Relief Advice

Or Call: 877-853-6466

Category: Finance/Personal Finance
Keywords: debt relief, debt settlement, getting out of debt, credit card debt, unsecured debt