Small Business Debt Relief - How Small Business Debt Can Be Settled - Only Pay Back 40%

Small business went through irreparable loss during recession. Most of them had taken personal loan or loan for their business without anticipating the repercussions of recession on economy. Business collapsed and left little scope to recover the financial loss. Together all this disrupted the lender's business. However the federal stimulus package released by the government provided an immediate relief to the pillars of the economy.

Debt relief network help people get rid of the debt through negotiation and settlement. Debt relief services are affiliated to the debt settlement companies and several financial organization. It is advisable to refer a debt relief network, which can channelize you to the right debt settlement company. The debt settlement company studies your debt liabilities, assets you own, the complete financial position and design a plan to negotiate with the creditor. They are proficient at dealing with the creditors; they convince the lenders of an assured payment but at a reduced rate.

Some of the areas of negotiation would be to lower the interest rate on the credit card, waive off the late fees, over due payment and other financial charges. They stretch out the period of payment to 2-3 years and recommend paying at least 3% of the debt every month consistently. Debt consolidation can also be a part of the program. You can merge debt from multiple credit cards into single payment or transfer the high interest rate debt into lower interest rate.

There is also an option to take debt consolidation loan to start off paying the credit card debt. All this put together would help reduce the debt by 50-70 percent; this leaves you with the remaining 30-40 percent to be paid over a time period of 2-3 years. This scheme might be accompanied with a bad credit score, but it never the less has milder impact that filing bankruptcy. Bankruptcy spoils your credit history for at least 10 years, denying you of further loan or debt from government or private financial organizations. Keep all avenues opened to settle debt, do not resort to bankruptcy.

Finding legitimate debt settlement companies is not that difficult but consumers must know where to look. It would be wise to utilize a debt relief network that will qualify the companies for you and ensure that they are legitimate and have proven themselves. To locate the top performing debt settlement companies in your state check out the following link: