Debt relief help has already been in existence long before the recession hit the global economy.
Many people already have problems regarding debt.
However, before the global economic crisis, qualifying for debt relief has been difficult.
It seems that debt relief is only for those who are good borrowers.
This is no longer the case and anyone can get help.
After all it is the people with problems that need help.
If you think about it, help should be available to those who have trouble making their monthly credit card payments and not just for those who can pay their monthly dues regularly.
You may be wondering what good is debt relief help for people who are not in debt? If you can pay regularly why would you bother to seek relief? However, when recession hit the global economy the rules changed.
Millions of Americans on now near the poverty line because of debt and need help to get out of it.
The number of people having difficulty in paying their monthly credit card bills is increasing.
Collection of credit card companies started to shrink.
Creditors felt the urge to make some changes in availing debt relief and so they sought help from the federal government.
The federal government responded promptly and now the rules have changed.
Today, financially problematic borrowers are now given chance to avail debt relief.
So, what are the criteria to avail debt settlement? #1 $10,000 or more in unsecured debt.
Ten thousand dollars in credit card debt is huge and if you reached at this amount you will feel the curse of compounding interest.
How can borrowers pay this amount plus the interest especially at this time of recession when many people are unemployed? This is why debt settlement was made available for those people who have this amount of credit card debt.
However, you must also be having difficulty in paying your monthly credit card bills regularly to qualify.
#2 Borrower facing the threat of bankruptcy.
Bankruptcy may get you out of debt when you get approved.
However, this also has a negative impact on your credit score as well as your reputation.
Many borrowers find it difficult to avail of new loans in many years after filing bankruptcy.
It is because they have a bad credit score.
If you are a problematic borrower facing bankruptcy then you are qualified for a debt settlement option.
#3 Unable to pay much more than the minimum payment.
This is a sure sign you are in serious debt and need debt relief help quickly.
Just meeting the minimum payments will see your debts spiral out of control quickly.
If you meet any of this criteria you should seek help now.