The American Debt Recovery Plan - How Consumers Are Eliminating Credit Card Debt
Online, July 12, 2010 (Newswire.com) - Over the past couple years the United States government has taken many steps to save and bailout large financial institutions. Large debts were incurred that simply could not be paid back and the government saved them from complete collapse. Now, many debt relief institutions are taking the same approach to Americans struggling with credit card debt. Consumers with over $10,000 in credit card debt and experiencing a legitimate financial hardship are now eligible to have half of their balance completely eliminated.
The main reasoning behind the American debt recovery plan is that many consumers are simply unable to pay back their credit card debts. Millions of consumers are on the verge of bankruptcy and in desperate need of debt relief. Instead of filing bankruptcy new methods have been introduced to bridge the gap between creditors and consumers.
Consumers are not the only ones feeling the pain. Creditors of unsecured debt are extremely concerned about collecting on their ever increasing delinquent accounts. Credit card companies know that if a consumer were to file bankruptcy they would likely receive none of their money back. Knowing this, creditors are resorting to other collection practices. One of these collection practices includes debt settlement or debt negotiation.
Debt Negotiation is basically a process where consumers and creditors reach a common ground and settle the debts for less than the actual balance. The average debt settlement in 2009 was negotiated for around 50% of the actual balance. While it's possible to negotiate with creditors by yourself, the majority of consumers will use a debt negotiation company to manage the entire process.
Debt settlement is an aggressive debt relief tactic 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.
Unfortunately many irresponsible and predatory debt relief companies have entered the market to capitalize on the growing market of consumers in debt. These predatory companies have given the industry a black eye but it's important to remember that legitimate services do exist.
If a consumer wants to find Legitimate Debt Negotiation Companies the best place is through a debt relief network. The top debt relief networks make sure the debt settlement companies are certified and have a proven track record in settling consumer credit card debts. They will make sure the company is an accredited member of The Association Of Settlement Companies (TASC) and also has the legal authority to negotiate debt settlement deals.
To locate legitimate debt negotiation companies through a top debt relief network check out the following link:
