Personal Debt Settlements - How Consumers Are Able To Negotiate And Eliminate Unsecured Debts

May 11, 2010 - PRLog -- Personal debt settlements have become highly popular because of the fact that once a consumer goes for debt settlement, he or she will be able to eliminate the negative impacts of the bankruptcy filing and lead a healthy financial life thereafter. The creditors are also afraid of bankruptcy filing because if a consumer successfully files for bankruptcy, the creditors will lose their liquidity which means that they will not be able to manage their own expenses and they will eventually become bankrupt! Thus, they are open to debt settlement deals.

A person can go for personal debt settlements if the overall unsecured debt of the consumer is above $10,000. The consumer must then hire a professional settlement company for help. This is because of the fact that the professional settlement company has a complete understanding of the banking system and they are also familiar with the loopholes that exist in the system. The professional negotiators know how to make use of these loopholes and they also know exactly how much to push the creditors to bag a generous settlement deal for the consumers.

Once a consumer hires a professional company, the negotiator will advise the consumer to stop paying the creditor and go delinquent. This is important because once the consumer goes delinquent; it becomes easier for the negotiator to prove that the consumer is in trouble and cannot pay back the debt in full. This might be a tough decision for the consumer but, he or she has to do this! Once the consumer goes delinquent, the creditor will wait for a period of 90-120 days and then sell off the debt to a collection agency for as little as 20-30 cents on the dollar. It is then that the professional negotiator from the settlement company contacts the creditor and offers a better deal of 40 cents on the dollar which is 100% ROI for the collection agency and 60% savings for the consumer.

This is how the consumers looking for personal debt settlements can negotiate for a settlement deal with the creditors.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.

http://www.freedebtsettlementadvice.com

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FreeDebtSettlementAdvice.com is a matchmaker in the debt reduction industry. We pair consumers up with debt specialists in their area free of charge that are most likely to get consumers the best deal.

http://www.freedebtsettlementadvice.com