Debt Settlement - How to Never Pay Back Your Unsecured Debt

Why is the current popularity of debt settlement so significant? How is it different from all other times when debt settlement was used by borrowers to reduce their debts? Read ahead and find out how and why this recession has brought a new dawn for the idea of settlement of debts.

a. Doctor, heal thyself

Borrowers no longer approach lenders with trepidation and fear when requesting a debt settlement. Rather, they walk in and ask for settlement details as if they are entitled to the same as a matter of right. What has caused this change in attitude? Banks and financial institutions received bailout money last fall. Auto companies received federal assistance last winter. Banks epitomized financial discipline. Auto companies manufactured something that would never go out of fashion- automobiles. Yet, these two industries required a bailout. Borrowers stopped equating debt settlement with stigma and shame. If big lenders and large industries can mess up their finances and seek assistance, why ordinary borrowers should be treated differently?

b. Federal Stimulus- Enter Stage Left

The stimulus has been one of the biggest interventions by the US government in the working of private enterprises. The State intends to pump in as much as $787 billion to revive the economy. This has given a boost to debt settlement because consumer confidence has suddenly risen and lenders are prepared to take more risks since they have the backing of Federal funds.

c. The principal amount cannot be touched, or can it?

In the past, debt settlement was restricted to wavier of the penalties and penal interest imposed on the borrower. However, this time around, lenders have been forced to offer waiver on the principal amount as well. Borrowers who requested settlement were in such a precarious condition that lenders had to offer as much as a 60% waiver of the amount owed to facilitate quick repayment of the remaining amount. This has destroyed the last psychological barrier- the one that said that the principal amount has to be repaid no matter what.

With these options available, a borrower who chooses the right settlement company and negotiates in the right manner can get away from his debt by paying just a small fraction of the sum owed.

If you want to get out of debt and hire a debt settlement company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt.

FreeDebtSettlementAdvice.com is one of the largest and most respected debt relief networks on the marketplace today. To find a debt settlement company through FreeDebtSettlementAdvice.com check out the following link: