Debt settlement and the debt negotiation industry has grown significantly in this weak economy.  The available credit has all but dried up for American consumers seeking unsecured credit lines yet the interest on their credit card debt continues to rise.

With incomes decreasing nationally and the unemployment teetering at 10%, many consumers no longer have the ability to pay back their unsecured creditors that hold their credit card accounts.  Most of these people are delinquent on their credit card bills and very few qualify for a traditional debt consolidation loan, because if they own a home, they likely lost their equity during the housing crisis.

Consumers are considering bankruptcy, credit counseling and debt settlement that negotiate reduced credit card balances if funds are offered to pay off the credit card debt.  More and more people are comfortable with the debt settlement, because it allows them to become debt free in 12- 18 months.  Credit can be reestablished quicker after debt settlement than a bankruptcy, because the chapter 7 and 13 bankruptcies are reported by Trans Union, EquiFax and Experian for seven to ten years.

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