We have seen, and are still seeing, the dire consequences of an economic downturn. We have observed its trickling effects on both directions up and down and across all economic classes. It is a logical conclusion that when confronted with real and present threat of unmanageable debt people look for outside help to arrest the vicious debt cycle.
Debt relief programs such as credit counseling and bankruptcy have long been considered the most accessible options available to people who need help in “managing” their seemingly unmanageable debt. Statistics on the advantages, benefits and successes of these two programs are readily available in aid of informed decisions on debt relief.
Debt Settlement: a Serious Contender in Debt Relief
Debt settlement, on the other hand, is a fairly recent alternative debt relief program. Nevertheless, positive comments on debt settlement from both inside and outside the debt relief industry are increasing and people in need of debt relief programs are taking a second look at the program.
Debt settlement is now widely considered as a middle ground, halfway between the protracted process of credit counseling and the radical, final option that is bankruptcy.
More and more people are realizing that debt settlement offers the most favorable form of relief for consumers under hardship from unmanageable debt. Furthermore, it has gained acceptance as a viable approach to personal sustainable economic recovery.
Studies have found the clear advantage provided by debt settlement over alternative debt relief options by offering consumers not only the opportunity of paying their outstanding debt, but also paying much less than the total amount of debt in a comparatively shorter period of time.
With particular review of debt consolidation and credit counseling, such studies considered debt settlement as a concrete route towards liberation from debt and therefore personal economic recovery. They cited the role that debt settlement plays in the entire healing process to get debtors and their households back to financial viability, while improving the likelihood of a sustainable economic recovery. This particular recognition is widely believed to be absent in the other alternative debt relief options.
A Viable and Logical Way Towards Financial Recovery
There are two important indications that would point to the likelihood of economic recovery once a personal decision for debt settlement is made:
- The consumer decides to put a stop to accumulating further debt. This decision is the first concrete indication that economic recovery is within reach. There is no other way to interpret it otherwise. It is rendered even more significant when taken against the consumer’s wanton disregard for a balanced budget that characterized his life up to this point.
- The debtor decides to put an end to further impose the burden of debt upon himself and his family. The ideal of economic relief and the financial health and welfare not only of himself but of his entire family as well now transcends his personal boundaries and further reinforces the likelihood of economic relief and ultimately economic recovery.
Build a Business While Advocating a Debt-Free Society
It is worth noting that debt settlement companies are also widely recognized as providers of the twin benefits that are essential factors in the process of economic recovery: 1) helping individuals in financial hardship, while giving them opportunities to correct the financial imbalances committed in the past and 2) genuine concern for greater consumer welfare.
The debt settlement companies typically have built up a relationship during their normal business practices with the credit card companies and can come to a settlement agreement quicker and at a more favorable rate than debtors acting on their own.
With the great number of households experiencing debt brought by economic crisis, more and more credit card companies are willing to settle existing credit card debts rather than add more to their list of written off bad debt.