Consumer Debt Settlement -Warning Signs To Recognize

July 13, 2010 - PRLog -- Many consumers were not even aware of the growing situation with the United States economy or how the global economy effected the rest of the world.

Aurora Lillo Editor of the "Best Debt Settlement Services" website -- http://www.BestDebtSettlementServices.com -- pointed out;


“...Consumers continued to spend money using credit cards, taking out homeowners loans and blindly going on about their daily lives. The shock of the recession in the United States and the loss of jobs began taking a bite out of the companies who held the mortgages and balances. Suddenly banks were demanding higher interest rates and credit cards companies raised their interest rates and people were suddenly finding themselves in over their heads in bills. What do you do when you can't pay the entire bill? ...”

Consumer debt settlement is not a new concept but was not as widely used before the new bankruptcy laws went into effect. Debt settlement allows an individual to pay off a percentage of their bill in a settlement offer that is normally sent to the individual who owns the company. If you accept the offer than you pay the percentage offered and the account is considered paid. Settlements will appear on a credit report with the original amount owed and the amounts that you had paid prior to the settlement and the balance you paid. Many companies that offer you an account settlement may even reflect a paid in full on a credit report if you ask for a correction in the credit reports as part of the consumer debt settlement. Most companies will not offer this option unless you specifically ask for it.

“...Warning signs to recognize can include using credit cards to pay utility bills, buy groceries or make mortgage payments to name just a few. Missing a monthly payment can cause credit to appear late on your credit reports causing your credit score to go down. Putting off paying a bill until the last day or acquiring a late fee is another sign that consumer debt is getting out of control. Foreclosures on homes are destroying credit standing and ruining many individuals credit scores. Consumer debt settlement allows an individual to settle debts with the companies they owe and help restore their standing with the credit unions...” added A. Lillo.

Further Information By Visiting; http://www.BestDebtSettlementServices.com