Debt Settlement - Learn the Meaning of Structured Settlements and Debt Relief

Credit card debt has been troubling most US citizens day in and day out. The recession has done massive damage to the credit card users. Credit cards have traditionally been used for credit on monthly basis. For people who live from one pay check to the other, credit card has been the means to survive during the month. At the end the bills used to be cleared using the salary. Because of the recession most people in US lost their only source of income. They are now running form pillar to post to make both ends meet.

They also need to look for debt relief and get rid of their debt.

Let us take a look at structured settlements. A structured settlement is a payment plan that is spread over a period of time. Let us take the example of Miss Linda (fictitious) who met with a car accident and has been awarded a settlement of $100,000 for a period of 10 years. What is means is Linda will be paid a total amount of $100,000 over a period of 10 years in monthly installments. Using this amount she will be able to meet her regular expenses over a period of 10 years. She may have an option of going in for one time compensation or a debt settlement.

A large number of companies are also into the business of buying structured settlements. If you have gone in for a structured settlement you can sell it to a company and get a lump sum amount. This amount can be utilized to clear your debts. In a manner these settlements and debt relief are closely related to each other.

If you are to go in for a structured debt settlement you will have to agree to clear your debt over a specific period of time and make regular monthly payments. In exchange you get an overall reduction in your debt.

Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.