Debt Settlement Leads

Mortgage Lead Vault offers exclusive debt settlement leads from applicants seeking fresh start beginnings. More and more mortgage brokers are requesting debt settlement leads rather than traditional home refinance leads. It is no secret that credit card debt is at an all time high. As of July 2008, the U.S. carries $962 billion in credit card debt. Late fees, high annual percentages rates (APRs), compounding interest and universal default can send debt out of control. A lot of creditors are willing to negotiate to avoid the potential of losing everything when the consumer files for bankruptcy. Because credit card debt is unsecured, these types of debts are discharged by the bankruptcy courts, forcing creditors to completely forgive the debt.

Debt Settlement Lead Demand Surges

The foreclosure epidemic is stimulating debt settlement because homeowners cannot use their home equity to consolidate debt anymore because:

1. There is no equity with the plummeting home sales and declining real estate values; and

2. Borrowers do not qualify because their credit scores are low from too much debt or late payments.

Background Information on Debt Settlement

Debt settlement is the process of a debtor eliminating outstanding debts for less than what is actually owed to the creditors. This process is also known as debt arbitration or debt negotiation. It is an aggressive alternative to bankruptcy and causes less damage to the debtor's credit scores than bankruptcy does. As a result of the current foreclosure crisis and people losing their jobs, the demand for debt settlement is extremely high. This is especially true in light of the bankruptcy laws passed by the Bush Administration in 2005 that made filing for bankruptcy so much more complicated, time-consuming and expensive.

On the average, consumers are debt-free within 36 months. The damage to their credit lasts up to 7 years, as opposed to up to 10 years-the damage inflicted by bankruptcy. On top of that, many reputable debt settlement companies also have credit repair and credit restoration services built into what they offer consumers. With these services the damage inflicted to credit reports is typically reduced by quite a bit. In some cases, the damage inflicted by debt settlement is removed altogether and the consumer's account is re-aged to reflect successful payment of the debt. But, even at worst case the debtor is given the peace of mind of debt relief and no public record is generated.