Debt Settlement - Avoid Filing For Bankruptcy and Eliminate 60% of Your Unsecured Debt

If you owe a massive amount of money to your creditors in the form of unsecured credit card debt, you might have considered filing for bankruptcy. It seems that it is a popular choice among American consumers. However, bankruptcy does have a long list of cons or downsides. If you haven't already entered into proceedings, I want you to stop right now. Before making your final decision, take the time to carefully examine debt settlement.

When it comes to debt settlement, most wonder "what makes it so great." Why is settlement better than filing for bankruptcy? Because you don't walk away from your debts in full. Of course you may like the sound of being resolved of responsibility for repaying your credit card bills, but this will hurt your credit score for seven years. It will show that you didn't pay your bills and all lenders will take this into account if you were to ever approach them for financial assistance. Guess what? Most will not give you a loan because you are an at-risk consumer. You declared bankruptcy to avoid paying your bills once, what makes lenders think you wouldn't do it again? They have no clue and most consider it too risky.

But wait! What about debt settlement or reduction; what makes it better? You can get around sixty percent of your debt eliminated. What happens is that some of your total owed (not all of it) is eliminated. The amount you see reduced can be around sixty percent, which is quite a significant amount. So even though you aren't walking away completely, it is a lot easier to get out of debt with this reduced total. Most important of all? The fact that your credit score takes a lesser hit, you should only have a lower credit score for two years.

You have nothing to lose by at least talking to a debt settlement company; examine your options and see if you are an ideal candidate for this relief option. Want the contact information for some of the best companies specializing in reduction of debts? If so, visit the online website of a debt relief network.

If you are over $10,000 in unsecured debt you really should consider getting a debt settlement. Creditors of unsecured debt are fearful of collecting and they also have stimulus money to make debt settlements financially feasible for them. Once the economy turns around it will be too late to eliminate your debt. Check out the link below to locate legitimate debt relief companies in your area.