Monday, August 31, 2009

Debt Relief For Consumers - How to Take Advantage of Federal Stimulus Money to Eliminate Debt

Debt relief for consumers has always been available and thanks to federal stimulus money debt relief is more favorable than ever for consumers. The federal stimulus money initially went to large financial institutions where the majority of consumer credit lines are originated. Creditors are now using this federal stimulus money to offset their losses that they are incurring through debt settlements. Therefore the stimulus money has made the creditors much more flexible in negotiating a debt settlement and they are currently agreeing to very generous settlements sometimes as low as 20%. If you are a consumer who is at least $10,000 in debt it would be financially prudent to talk with a debt settlement company while the conditions are so favorable.
Explanation financial leverageImage via Wikipedia

A debt settlement company will be able to provide debt relief for consumers and should only be paid when they perform to your satisfaction. You should never have to pay an initial fee and any debt settlement company that asks you for an initial fee should be avoided. There are several legitimate debt settlement companies that are performance based meaning that they only receive a percentage of debt that they are able to eliminate. With a performance based company you can be assured that they are trying to eliminate as much debt as possible because the more they eliminate the more they money they make.

The federal stimulus money has made debt relief for consumers more financially attractive. Another, big contributor to the generous settlements that are currently being negotiated is those creditors are very worried. Defaults and delinquent accounts are rising at alarming rates a creditor are trying to make deals in order to recoup at least some of their money. Debt settlement companies definitely have significant leverage over creditors in this market and the best companies will be able to eliminate at lest 50% of your unsecured debt. Knowing where to find a top performing company is critical if you want to get the most favorable deal.

If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt.
Reblog this post [with Zemanta]

No comments:

Post a Comment

If you like my blog please give me your valuable opinion.