subject: Debt Reduction Advice - How To Legally Reduce Up To 70% Of Your Unsecured Debt [print this page] Many of you have probably heard about the governmental debt relief programs. Some of you are even aware of the details of these programs. But very few of you truly believe that it is possible to reduce your unsecured debts by THAT much. How does the debt reduction system actually work?
Due to the bad economy, more and more economic agents find it difficult to still operate on the market, mostly because of the lack of cash. Credit card companies have thousands of debtors unable to pay their debts, because they lost their jobs or simply suffered major cuts in salary. Unless there is a certain level of cash-flow, the credit card company cannot afford to sign more deals with new customers and the activity is stopped. This is why they came to the conclusion that negotiating with their clients and forgiving a part of these people's debts is a wise solution. They are also backed up by the stimulus money provided to them by the government to cover a part of their losses.
On the other hand, customers would rather settle the debt with the bank, than fill bankruptcy. Bankruptcy can decrease people's credit scores for 7 to 10 years, thus decrease the chances of receiving another loan during all this time. It can occasionally lead to the loss of some physical assets as well.
It is recommended for customers to hire a debt settlement company to negotiate with the bank on their behalf. Negotiating directly with the bank, without the help of the settlement company, can lead to bad deals or even complete failure or the negotiations. A good settlement company can obtain reductions in their clients' debts of 40% to even 70% of what the clients initially owed.
Resorting to the data bases of a debt relief network is the fastest way to get in touch with a reliable, professional debt settlement company.
It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified. They are free to use and offer helpful debt relief advice.
