Debt Directory

Debt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations.

Traditionally, from antiquity through the 19th century, it refers to domestic debts, particularly agricultural debts and freeing of debt slaves. In the late 20th century it came to refer primarily to Third World debt, which started exploding with the Latin American debt crisis (Mexico 1982, etc.). In the early 21st century, it is of increased applicability to individuals in developed countries, due to credit bubbles and housing bubbles.

Debt Relief Solutions

Everyone is looking for debt relief solutions. Why shall you renounce yourself from getting some debt relief help? There can be several reasons why you are not opting for debt relief solutions.

First, you may be apprehensive about the success rate of debt relief industry. Second can be the fact that you are unaware of the various debt relief solutions and options that may aid you in your debt reduction.

If you are afraid of the success rate then, I must say that either you are not equipped with proper information or you are incorrectly informed. It is true that there are several fraud companies in the industry which cheat the consumers.

The recent law released by the FTC will ensure that the fraud companies no longer exist in the market as the law will put a ban on the upfront fee collection from the debtors. The law will come into effect from 27th October. If second reason is what stopping you then, keep reading this article and you will know what the options that you have are.

Settlement as your prime choice:

Debt settlement is no doubt the best option that you have. This is because of the fact that this method does not only help you to eliminate the debt that you have by 50-70% but also helps you to avoid any kind of financial troubles. You need to hire a professional settlement company.

The negotiator from the company will negotiate with the creditor and will try to eliminate the debt that you have by at least 50%. The negotiator gives an implicit threat to the creditor that you will file for bankruptcy in case the creditor declines the offer from you.

The creditor will never want this because of the fact that if you file for bankruptcy, the creditor will lose all the money. The creditor will accept the deal and will eliminate at least 50% of the unsecured debt that you have. Neither will your FICO score go down and nor will you lose credit worthiness. You will remain a prime consumer.

Consolidation as your secondary choice:

You need to hire a non-profit debt consolidation company here. The consolidator will contact the creditors and will ask them to reduce interest rates and wipe out some service fee, late fee and over-limit charges.

The creditors will actually do that because they know that they will get back their money though the profit income will fall to some extent. They will re-amortize the payments and you need to make only one payment each month. The consolidator will receive that payment and will distribute the same between all your creditors. This will help you to overcome your debts in approximately 5 years or little more.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.