Debt Settlement Basics
December 24, 2011 
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Debt Settlement Basics
Nearly 40% of all people find themselves in difficult financial circumstances that they never would have predicted. Thats nearly half! If all of those consumers plummeted into bankruptcy, imagine the detriment to society in general. In fact, approximately 85-90% of all charged off debt goes uncollected, leaving the rest of society to pick up the tab in the form of higher costs. Is the best answer bankruptcy? Not always. Keep reading to learn more about a viable alternative to bankruptcy called debt settlement.
What in the world is debt settlement?
Debt settlement is an aggressive debt relief option. A reputable debt settlement company uses professional tactics to negotiate with creditors on a consumers behalf in efforts to secure a settlement for a percentage of the payoff balance.
This is considered payment in full. By opting for debt settlement, many consumers avoid bankruptcy and get back on track financially.
Who is debt settlement for?
Consumers who have fallen into difficult financial hardships, such as unemployment, serious illness or injury, divorce, care of an ailing parent or family member, and many other circumstances. Settlement is for those consumers who want to ethically honor their debts to the best of their ability and avoid filing for bankruptcy in the midst of extreme financial struggle.
What should consumers prepare for?
First, debt settlement is not a quick fix, and any company that says so is most likely not a reputable company.
Consumers should know that their credit will take an initial hit. However, most consumers who qualify for debt settlement have poor credit to begin with. After high-interest credit card debt is paid off, consumers are in a better position to begin the process of credit restoration. Consumers should also be prepared to commit to active participation in a debt settlement program. The process of debt settlement requires active communication and participation from both the client and the debt settlement company. So by no means is debt settlement taking the easy way out.
How can consumers find a reputable company?
Before choosing a company to work with, consumers need to do their homework. First and foremost, find out about a companys fee structure. Never go with a company that charges fees before actually settling at least one consumer account. To do so is actually illegal. Recent FTC rules stipulate that a settlement company must settle at least one consumer account before collecting a fee for doing so. Consumers should also look for a company that isnt pushy with sales, but seeks to educate the client on the option that is right for their unique situation. Consumers can also check the BBB to learn more about the companys history and any complaints against them, as well as how those complaints were resolved.
How is debt settlement a tool for consumer advocacy?
When a consumer files for bankruptcy, everyone involved loses. When practiced in an honest, ethical way, reputable debt settlement benefits all who are involved. First, settlement helps relieve a very clogged court system by reducing the amount of litigation for debt accounts, along with the amount of bankruptcy filings. Debt collectors and creditors also recover funds that wouldve otherwise been lost to bankruptcy. And the lower the number of bankruptcies, the less that society in general has to pick up the tab in higher costs.
Reputable debt settlement really does have the potential to benefit all involved. If youre one of the 40% caught in a difficult financial hardship and are considering bankruptcy, look into debt settlement first. It may be the relief you are looking for.
Superior Debt Relief Services has been genuinely fighting for consumers for over 10 years. Our certified debt arbitrators skillfully negotiate with creditors on your behalf in order to secure settlements for a percentage of the current balance. Superior Debt Relief Services is an industry leader and never charges fees until at least one of your accounts is settled.
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