How to Eliminate Unsecured Debts Through a Legitimate Debt Negotiation Process

By Mason Lewis

The debt settlement companies have come out with a lot of strategies on how to eliminate unsecured debts through legitimate debt negotiation process. A consumer may choose to go ahead with the debt negotiation himself or, through a debt settlement agency. In either case it is good to know certain legal facts while negotiating debt with the creditors.

Check out the statute of limitation (SoL): The SoL is the legal time frame within which the creditors (whether original creditors or, collection agencies) can collect the debt, and can also take action against the debtor. It is generally for 7 years but, it is different for different debts and varies in different states. The SoL starts when the debtor first fails to make a payment to his account or, when the creditor sends a letter asking for the full amount.

If the SoL for the debt in concern is over then the creditor cannot do any thing to get a penny out of the debtor. This is an excellent legal way to eliminate old debts. The debt validation method works similarly to the benefit of the consumers. This method can prove the legitimacy of the collection agency. If the collector cannot prove that the consumer owes them the debt then, debtor can legitimately refuse to pay.

One may come out with numerous tips on how to eliminate unsecured debt, but, other than the expiry of the SoL there are hardly any legitimate debt negotiation processes that can totally eliminate the existing debt. A consumer can take recourse to various debt settlement programs that are made available to the average citizen. These programs can help in reducing the debt amount by 50% or, more.

The consumer has to be very careful while choosing the settlement company or, program. All debt settlement programs are not available to every one all the time. One should find out the qualifying conditions to avail these programs. Generally, the qualifying condition is to have a debt of $1000 or more.

The consumers should also ascertain the legitimacy of the settlement companies they consult with to find out how to eliminate unsecured debt. Many unauthentic companies exist that promise huge returns in very little cost. A legitimate negotiation cannot be done through illegitimate companies. Consulting with people who have gone through similar debt issues is considered judicious.

The last and the worst legitimate way to eliminate existing debt is to declare bankruptcy. This should not be done at any cost. But a 'threat' to declare bankruptcy can have desired effects on the creditors. Many people have been able to reduce their debts by more than half of the total payable amount by only threatening the creditors with bankruptcy.

It is better to consult the non profit debt settlement companies to come out of debt. Whatever be the settlement conditions, it should be taken in writing from the creditor.

Debt settlement companies are widely available in just about every state however some are just flat out more experienced than others in debt negotiation. That's why it's so important for consumers to use debt relief networks. These networks qualify and only accept the best performing debt settlement companies. To find a legitimate debt settlement company in your state check out the following link: Free Debt Advice. Article Source: http://EzineArticles.com/?expert=Mason_Lewis