by : Jason McGraw

Debt Settlement as a means of debt relief can be extremely advantageous for consumers struggling with meeting the minimum monthly obligations (payments) on credit cards, unsecured loans and medical bills, etc. As with all things in life one needs to make sure they are pursuing the correct option for their specific needs. When considering using debt settlement as a form of debt relief it is important to make sure you have a legitimate hardship. If you enter into a settlement without a solid hardship you may find that the program is not as beneficial as once originally thought. Creditors will and do accept settlements on a daily basis. Obviously, this is not something they are eager to advertise to potential clients as well as the ones they have already attained. It is important to note that Debt Settlement is designed to reduce debts that the client deems valid. Debt Relief usually cannot help if you are disputing the debt or believe that your circumstance and reason for accumulating the debt are unjust. In these cases it is wise to consult the professional advice of an attorney to represent your claim, rather than accepting the damage and or debt with the hopes of negotiating a settlement by employing a debt negotiation company. Again, for the settlement to be reached it is imperative to have a legitimate hardship. So, if you have just gone to the local electronics store and purchased the latest and greatest that Silicon Valley has to offer with intentions of entering into a debt settlement program not only could this be considered fraudulent activity, but you may also find that most settlement companies are unwilling to work on your behalf.

Considering the staggering amount of unsecured debt in the United States (approx. $943.5 billion) it is very plausible that most clients are being forthcoming and honest about their hardships. The most common question is "Do I have a legitimate hardship?" This question is very ambiguous at best since the creditors make the final decision on whether or not they believe a hardship to be legitimate. Now, with that said there are a few tried and tested hardships that creditors commonly accept. In our experience we find that clients whom have lost their jobs and have no means of financial support have very good chances of reaching favorable settlements with their creditors. Also, clients experiencing divorce and medical issues which inhibit them from making their payments are highly likely to receive the desired results through debt settlement. Even people who are current on their bills but continually struggle to stay current may find that they also are candidates for a debt settlement program. Finally, we have noticed that clients who are on a limited fixed income have very good chances of reaching positive settlement results. By no means are these the only legitimate hardships by which a settlement can be reached. Since each debt situation is unique to each client there may be other hardships which will also serve as being valid, therefore helping to reach a settlement with the creditors.