Consumer Debt Relief Options - Why The Debt Settlement Industry Needs To Exist
Online, May 11, 2010 (Newswire.com) - Over the last 5 years debt settlement has become a very common option for many debt ridden consumers. The new bankruptcy laws that were passed in 2005 made it very difficult for consumers to file bankruptcy therefore debt settlement was the next best option. While debt settlement has led to several negative consequences for some, it has also helped millions of consumers eliminate unsecured debts . With credit card companies jacking up their interest rates, and bankruptcy being more difficult to qualify for, debt settlement serves as a legitimate industry that benefits both the debtor and the creditors.
There are more Americans deeply in credit card debt than at any other point in our history. This is mainly due to the irresponsible and unregulated lending practices over the last decade. For consumers with $10k or more in credit card debt it will take nearly an entire lifetime to pay back the debt in full. Credit card companies are jacking up their interest rates making even the monthly minimums difficult to pay for many. If consumers are struggling to pay their monthly payments or just don't want to spend their whole lives trapped in debt often opt for debt settlement instead of filing bankruptcy. Debt settlement will typically affect a consumers' credit score for 2-4 years while bankruptcy will affect a credit score for at least 7 years.
The debt settlement industry was responsible for settling over $1 billion in unsecured debts in 2009 alone. This resulted in approximately $600 million being eliminated for consumers while collecting $400 million for creditors. Unfortunately over the last 5 years there have been several unethical debt settlement companies that charged large upfront fees and did nothing for the consumer. While these companies do exist consumers should also know that there are several legitimate debt settlement companies that have a proven track record in setting consumer debts. It is very important that consumers know how to legitimate debt settlement companies with established track records and avoid the shady companies.
The easiest way to locate legitimate debt settlement companies is to use a free debt relief network . These networks will ensure that the debt settlement company you are provided is legitimate and is a respected member of all the regulatory commissions such as The Association Of Settlement Companies and the BBB. Most free debt relief networks will provide a free debt consultation to help the consumer determine what debt relief option is most appropriate. There is no magic bullet to get out of debt however debt settlement can a good option for consumers who are experiencing financial hardship and have at least $10k in unsecured debts.
To locate legitimate debt settlement companies through a free debt relief network check out the following link:
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