It is not only you who has been trapped into the financial imbalance, but there are various others who have also fallen in this ditch seeking their rescue.
Forced by the ever increasing cost of living, plenty of people are attracted toward using the debit cards thereby increasing the number of individuals filing bankruptcy.
This is a general trend in public that having stuck in financial overburden, they look for quick recovery by filing bankruptcy which comes with some disadvantages in the future.
One of the damages of insolvency is that you are blacklisted among the credit companies and cannot avail the credit facilities for the next several years.
It is quite expensive and your case goes through many legal tests and you are required to sign other documentation barring you from future loans.
The bankruptcy is not also in the interest of loaning institutions as they lose their investment.
To save the consumers from financial stress as well as the disadvantages of bankruptcy, the government has introduced certain debt settlement laws.
Through this article, you will come to know the benefits of using these debt settlement laws which benefit both the borrower as well as loaning institution.
That is the reason for debt settlement laws getting more and more popular among the borrowers.
Through these laws, the lenders succeed to recover their investment whereas the borrowers get considerable discount in their financial dues and they have to return it in easy installments.
Loan settlement deals are equally beneficial to the lenders as their investment is recovered.
Borrowers too get discounts on the accumulated dues making it easy for them to pay back.
Hence it offers the win-win position for both parties.
Certain new changes have also been introduced by the government in the debt settlement rules that provides extra security to the consumers.
The new rules do not permit the lender company to charge the service fee in advance.
Now the company can only demand service fee after reducing the dues of borrowers.
These recent changes have considerably promoted the use of debt settlement rules.