subject: Debt Relief - Why Debt Settlement Continues To Be An Attractive Relief Option [print this page] There are many reasons why settlement of debt is the most of popular debt relief option in America today. Read ahead and understand the reasons. Check whether the reasons apply to you as well. If yes, then you should opt for settlement to bring down your debt problems in a jiffy.
- Reduction of debt. Americans have been racking up huge amounts of debt for decades now. Despite recessionary conditions during bursting of the IT bubble, people continued to use their credit cards and unsecured loan options. Today, the economy has a hit back and people have debts that are far beyond their ability to repay. A settlement results in a waiver of fifty to seventy percent of the amount owed. In a sense, a settlement waives the mistake that the individual committed by racking huge debts. We have been taught that there is no such thing as a free lunch. Debt settlement is free lunch. Lenders waive the amount owed without expecting or getting anything in return. Only the balance amount has to be repaid. That is all.
- Borrowers are getting installment facility to repay the balance amount. This ranges from twelve to twenty four months. Not only does your debt come down but the duration of repayment increases as well. This makes it a very attractive option for the ordinary American suffering from not just the burden of debt but also from risk of unemployment or under employment.
- The rising popularity of settlement is accompanied with greater intervention of the government in the economy. Today, credit card issuers cannot change interest rates arbitrarily. The borrower now has the right to opt out of the rate increase. The debt shall be frozen at existing rates until it is repaid. This combined with the fantastic waivers being offered has increased chances of individuals to get rid of excessive debt. Public perception has changed and more and more people are confident that they can mange their debt problems. More and more people are concluding that they stand a good chance to enjoy a happy financial life in the future.
If you are over $10,000 in unsecured debt it would be wise to utilize a debt relief network instead of going directly to a debt settlement company. Using a debt relief network guarantees that the debt settlement company you choose has been certified and has established success in negotiating settlements. They are free to use and a good starting point to begin your debt relief process.
