Due to the recession in economy many debtors were left jobless. Those who stayed on with their jobs faced huge salary cuts. Due to this their financial planning went haywire and they were unable to repay their loans. The creditors were themselves under the threat of bankruptcy as they were losing large amounts of money loaned to debtors. This is when the federal government came up with the idea of stimulus money. This financial help received by the financial institutions saved them from immediate financial ruin. They then realized that if they forced the debtors to pay money which they did not have, it would only force them to file for bankruptcy. In this situation they would lose all their money. Hence their endeavor was to recover as much of the money loaned to debtors as possible.

This is where they proactively started offering debt relief to debtors in the form of debt settlement programs. Debt settlement programs are available for those debtors whose current financial situation does not allow them to repay their loans in full. Information about these settlement programs is easily available on the internet. In fact nowadays there are debt relief networks which provide free debt management advice to debtors. These networks are non profit organizations and have established debt settlement companies as their members. If you hire a debt settlement company recommended by a debt relief network, you will not be in danger of hiring a fraudulent company.

However, only those debtors who have a debt amount of $10,000 or more are eligible for debt settlement programs. Other debtors need not despair as there are many options available for them too. Debtors who do not qualify for debt settlement can opt for debt consolidation. In this process several high interest loans are paid off with a single low interest one. These debtors can also opt for conversion of unsecured loans to secured ones. The interest rates charged on secured loans are much less when compared to secured loans. In this way those debtors who do not qualify for settlement can mitigate their debts.

Finding legitimate debt settlement companies is not that difficult but consumers must know where to look. It would be wise to utilize a debt relief network that will qualify the companies for you and ensure that they are legitimate and have proven themselves. To locate the top performing debt settlement companies in your state check out the following link:
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