The recession and massive amount of people struggling with debt is acting as the cushion creditors to consider the debt relief options for their customers.
Most creditors would rather receive 40% of their money back rather than nothing, so creditors are agreeing to debt settlements much more often.
This encourages the other creditors to provide their customers the settlement as an option to clear their debts.
A consumer needs to have ten thousand dollars in unsecured debt to qualify for a debt settlement program.
The creditors have freedom in choosing the customers whom they want to give the relief.
The main criteria that creditors choose while selecting the candidate for debt relief is the number of months by which they did not get their money back.
Why any creditor will give you settlement if you are paying them their money back on time without any delay.
The creditors do not want to lose all their money (if you opt for bankruptcy then they lose all their money which you have as debt) and do not want to give relief to everyone.
Their main focus is to reduce the loss as much as possible.
The credit score will be affected negatively when you choose debt settlement.
The best trick is to threaten your creditor that you can opt for the bankruptcy.
This really works most of the time.
As I told you earlier, they do reduce their loss.
They will surely give you option of settlement.
The debt settlement process can be best handled by the professional and reputed debt relief firms.
The legitimate relief firms can get you debt reduction of 50%-60% easily.
They know the credit business well.
They will exploit all the loop holes in the system for you.