Debt relief companies have been in very high demand off late.
The reason being that many people are facing high debt problem and most of them are filing for bankruptcy under desperate conditions.
This has been the constant problem since the year 2008.
To counter the depression in the economy the Government gave a bail out package of $800 billion to the institutions to write off losses they were facing due to heavy delinquency from their customers.
The money was given with the directive that they would help the customers to settle the debts.
Once when the debtors got to know that the creditors are giving settlement at unbelievable rates more and more people started approaching the debt settlement companies for settling the debts.
The debtors would be faced by the counselors who would take the details of the customers and make a detailed list of the debts the customer owed to different creditors.
The agreement signed between the debtor and the creditor is studied in detail by the counselor.
The counselor abstains the customer from taking further credit.
The counselor now goes ahead and speaks to the creditors and tells them that the debtor is in a financial mess and he would need help in settling the debt and in case if he does not get any help he would have to file for bankruptcy.
The creditors realize that in case the customer does gets bankrupt the customer would not pay anything to the creditors.
The creditors today are under pressure to get back the working capital from the market.
Therefore the companies are getting settlement at rates which they had never been offered in the American economy.
Therefore it makes complete sense to settle debts right now than ever in future.