Personal Debt Solutions - Legitimate Resources That Offer Free Advice For Debtors

The economic situation of America was becoming worse

. A lot of Americans were facing difficulties in repayment of secured and unsecured debt principle and interest. To solve the economic situation and to safeguard the interest of both the creditors and the debtors, the Federal Trade Commission (FTC) laid down certain new rules and regulations. The government offered various debt solutions to the debtors keeping in mind that the creditors shall not suffer because of the debt solutions undertaken by financially distressed debtors.

The financially distressed debtor has various legitimate options for debt relief to choose from. Some of them are financial settlement, debt consolidation, filing for bankruptcy, debt counseling, etc. Each method has its own advantages and disadvantages. A debtor and creditor, who are caught in a difficult situation because of financial crises, can take legal advice from various resources available and choose the best method to follow to get a solution to the problems associated with debt.

For settlement stringent rules have been laid by FTC regarding non collection of upfront fees by debt settlement companies and allowing tax breaks to those who opt for this solution. This has safeguarded the debtors who utilize the services of these debt settlement companies as the debtor has to pay the fees of these companies only when the debt is settled as promised with the creditors. These laws have eradicated many fake debt settlement companies which made big holes in the pockets of already miserable debtors. Many debt settlement companies have been opened by the government which provides free counseling regarding debt settlement.

For debt consolidation, there are various organizations that provide free advice relating to debt consolidation. It helps the distressed debtor to pay off their consolidated debts at lesser rate of interests and also helps them recover slowly from their financial mess.

Various agencies provide free legitimate counseling to those who are not in a position to fully repay their debt. A debtor can always approach these agencies and discuss the situation with the advisors. These agencies may also negotiate with the creditors to settle part of the debts.

Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options. For a free consultation from a debt relief specialist in your area check out the following link:

Personal Debt Solutions - Legitimate Resources That Offer Free Advice For Debtors

By: smith archer

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