Settle debt for less - how increased debt industry oversight is ensuring you get a better settlement

Oct. 8, 2010 - PRLog -- The recession had a huge affect on the world economy destroying millions of people financially all over the world. Thousands of people lost their jobs alone in US and many families were under a huge amount of debt. Mostly all American citizens purchase their necessities like groceries, cloths, house, car, etc via credit card. By using credit card they agree to pay back the total amount with interest. The rate of interest on such debts keeps on fluctuating depending upon the current market situation. People don't realize that if they miss one installment the debt amount could increase significantly putting huge financial pressure on them.

However there is a way to get out of this trouble. The US government introduced new policies regarding debt settlement which came as a boon for many families who were under huge amount of debt for a long time. These new policies insured that no debt settlement company could cheat its clients. The government keeps a check on every settlement case that is being negotiated. The debt settlement companies have followed the various guidelines which have been set by the federal trade commission to stop unfair practices that were going on in the debt negotiation industry.

Increased debt industry oversight prohibits firm who is providing its clients negotiating services to take upfront payment. These firms can be fined $16,000 if any of them is found guilty of unfair practices. The total amount of fee which these firms can charge has also been specified in the new policies. They can charge maximum of 15 percent of the amount negotiated. This ensures that their interest lies with your benefit. Availing the services of professional firm can help you negotiate your debts by 50 percent or more. The amount to be negotiated from your debts depends upon the debt amount and your financial condition. These firms have experts appointed to negotiate your loan with your creditors and they make sure that you get the best settlement deal. The new law passed has given a new life to all the legitimate debt settlement firms.

Negotiating their debts is a viable option for all those people who have been under debt for long time and are unable to pay it back. For negotiations your unsecured debt must be more than ten thousand dollars. It is always a better solution to file for settlement rather than bankruptcy.

Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.

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