Debt settlements have seen a significant increase in volume over the past year and are growing in popularity among Americans who are looking for a way to eliminate debt and avoid bankruptcy. Due to the recent recession there are more people currently in debt than anytime in history. Delinquent accounts are rising at alarming levels and creditors are becoming very worried about not collecting their unsecured debt.
As a result of the bad economy and fear amongst creditors, debt settlements are being negotiated for very generous percentages. If you are over $10,000 in unsecured debt, it would financially behoove you to look into a debt settlement while conditions are so favorable says Los angeles Bankruptcy Attorney Steven Peck.
A legitimate debt settlement company will be able to eliminate at least 50% of your unsecured debt and cases in the 70-80% range are not at all uncommon in this market. Creditors are more than willing to make deals and a debt settlement company can provide significant leverage on your behalf. They have established relationships with all the major creditors including banks, credit card companies, and medical companies so they will be able to get consumers a more favorable settlement and expedite the process as well.
The only real consequence of debt settlements is that it will affect you credit score but nowhere as bad as bankruptcy. Your credit score will drop initially but in the long run it will actually help you out seeing as how you will not have as much outstanding debt. Your outstanding debt is a major factor in getting new credit lines or loans and debt settlements allow consumers to eliminate debt which will eventually help them get new credit lines. Most Americans are more than willing to trade a lower credit score in order to eliminate over half of their debt.
If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt.
About the Author
Attorney Adam Peck has been practicing law since 1981. A former successful business owner, Mr. Peck initially focused his legal career on business law. Within the first three years, after some colleagues and friend’s parents endured nursing home neglect and elder abuse, he continued his education to begin practicing elder law and nursing home abuse law.