Debt Settlement - Bankruptcy or Debt Settlement - Which Makes More Sense?

Life is changing pretty fast and so are the approaches. There were days when high debt had no choice but the only option was bankruptcy that only led to more complication of the economy and policies taken by the government. Nowadays, almost everyone is looking for debt relief option but the best option for eliminating your unsecured loan is Debt Settlement.

Debt settlement is not only the fastest legal way but also is the easiest method if you have overall unsecured loan of 10,000 dollars or more. It not only settles your debts in 2-3years but also make sure your credit score is maintained. This method also makes sure that 50% of your total dues are cleared. You have to hire a professional Debt Settlement firm that would negotiate with your lender on your behalf and convince him for settlement. Your lender will agree for the settlement easily because he earns profit from you and he does not want to lose you. Negotiation experts know the tactics to get his consent for settlement. By giving him the threat of filing for bankruptcy, they get his willingness for the settlement and by eliminating the high markup rates and other hidden charges successfully they get the reduction in total debts up to sixty percent. They also convince the lender to allow you more time for the payment of remaining debt with easy affordable installments. On the other hand if you negotiate yourself, you may not be able to get this much reduction. The reason for this is you are a lay man and you do not have negotiation skills therefore there are more chances that financial institutions refuse to allow you relief. So it is better to hire a negotiation firm and by paying very nominal fee, you can get relief to more than fifty percent.

Debt Settlement makes more sense in all the ways as it is a beneficial deal for a creditor and he will definitely consider it a compact due to the fact that the collection agency hired will pay only 20-30% of the total collected money to him. Moreover, the statue of bankruptcy posses a negative impact for creditors and this will eventually give them no option but to agree to the deal.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals.