Debt settlement, one of the best possible ways to clear your debts, was not encouraged when it started off. The reason was that most of the companies asked for the upfront amount and then left the debtor in mid way. The promises made to the consumers were not fulfilled and they were basically cheated. This led them in a greater financial crisis. Certain online fake companies worsen the situation. They disappeared after taking the money from the debtors because they never really existed. This led the debtors with even greater debt amount. Hence, the confidence of the general consumer was broken.
But this was until the new laws and guidelines were introduced by the government. The new FTCs laws provided the debtor greater liberty and interference in the negotiation. The procedure is to be made transparent to the consumer before starting the negotiation. Now, you can hire a settlement company, let them negotiate with your creditor on your behalf and debt is reduced. There are strong and strict guidelines which gives the consumer enough confidence to go with it.If you go for a debt settlement and you feel that you are being cheated, you can report at Better Business Bureau. The company will be provided a legal notice. If the problem is still there, strict legal action will be taken against them varying from a high fine of $15,000 to even the termination of the company. This is done so as to avoid any further damage to any other debtor.You may need to pay more to get a better deal. But in this case, you will be getting better services too. It is always better to go for a recognized settlement company even if it is expensive. The negotiation will be quite simple in this case and you will not be provided any kind of burden by the company. Moreover, creditors also show great deal of interest if the settlement company is a reputed one. At the end of the day it is entirely up to you to choose the best deal for you.
In this global era of recession, most of the people choose to file bankruptcy to get rid of the debt. Debt settlement is a far better legitimate alternative. It helps you to clear all your debts without any burden and helps the creditor too. in a way, this lifts up the economy.