The traditional rules of debt have not applied the last several years and now debt relief is a big issue for many people. In some case to get debt relief you have to qualify. These are not strict and are flexible in some cases, but they are guidelines. Read further to find out what they are.
Since there are so many debt relief companies emerging to help these days the competition for you business might make them bend the rules a bit. Most adhere to some basic guideline as follows.
- Amount - the common minimum amount owed is $10,000.00 unsecured debt.
- Debt to Income Ratio - the common number we see here is 25%. Again, taking you unsecured debts minimum payment against your gross pay.
- Future Income - no foreseeable income increases that would allow you to repay your debt.
With the debt situation in such a mess not only in the U.S. but world wide you would suspect these guidelines will be pushed aside. Lenders are happy to recover anything these days and a settlement of some kind is better than nothing. There is no telling how long this debt crisis will last, but that doesn't mean you should ignore it. What's not predictable is how the laws may change against the average debt holder.
This is even more reason that you should explore your options if debt is a problem for you. If a settlement through a debt relief program can put you back on track in 2-3 years it's best to lock it in and do the time. This time passes fast and then you are done with it. If your debt is under $10,000.00 don't give up. We do see a few companies who will handle the smaller amounts, but $10,000.00 seems to be the bottom number for most.
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