Today individuals have backed up from filing for bankruptcy because now there are other debt relief options available which are much better than bankruptcy.
They recession caused a lot of people lagging behind with their credit card bills making huge debts which are not easily to be get ridden off.
No matter how worse your situation becomes you should not declare bankruptcy.
Before that you should definitely attempt the first debt relief options.
One of the most popular debt relief options is debt settlement program and a lot of people are favoring it over bankruptcy.
The basic reason behind this is that it does not damage a borrower's life severely like bankruptcy does.
Debt settlement program has been evolved after a thorough research as more and more people were filing for bankruptcy which caused a lot of smash up to the country's economy also.
In order to stop such instability the government came out with debt settlement program to help the common people and on the other hand it provided with billions of dollars to the financial institutions so that they can recover their losses.
Debt settlement is a mutual agreement between the lender and the borrower, in which the lenders agrees to deduct some amount from the overall debt so that it becomes easily for the borrower to pay it off.
The borrower thus becomes able to pay off the debt and attain his debt free life and on the other side the lender collects some amount of money rather than having nothing at all.
Now the question revolving around your head would why the creditors agree? Well they agree because even a small collection at this time of economy crisis is very beneficial for them, moreover they have also got the stimulus money granted by the government.
To attain the most favorable deal you should appoint a debt settlement agency who negotiates with the creditors from your side.
They can decrease your debt to even up to 60%.
Over the past few years, since the recession began debt settlement agencies took the market by storm, some of them, which are considered to be the most legitimate and good performing ones have established relations with the credit card companies and they use is leverage to convince to accept the lowered debt.
They have all the information and skills that are needed to arbitrate with the lenders and they never give up until and unless the lenders reduced the debt.
However, you are supposed to pay to the debt settlement agency for their services provided when you hire them, but the fees in nothing in front of the benefits they provide.