Consumer Debt Relief Protection Act 2010 - How To Take Advantage And Eliminate Unsecured Debt

Online, September 27, 2010 (Newswire.com) - The Consumer Debt Relief Protection Act 2010 was recently passed by the FTC which helps consumers eliminate unsecured debt through a legitimate process. This law prohibited debt settlement companies from collecting upfront fees and provides increased transparency so consumers know exactly what they're getting into. The day of debt relief companies making false promises with no guarantee are over. Now consumers seeking debt relief have a legitimate process to eliminate unsecured debt and have the comfort knowing that if their debts do not settle they won't have to pay a dime.

The Consumer Debt Relief Protection Act was passed on July 28th 2010 and completely transformed the debt settlement industry. All the shady debt relief services that have been misleading and ripping consumers off for the past 5 years will be pushed out of the market. They simply won't be able to survive without collecting upfront fees. However the legitimate debt settlement programs that have actually been settling consumers' debts will have enough confidence to collect their fees on the back end when the debts are settled.

The debt settlement process does work and makes financial sense for some individuals. The typical settlement is negotiated for 50% of the actual balance. In 2009, over $1 billion in unsecured debts were settled which resulted in $600 million being eliminated off the books of consumers and approximately $400 million being collected for creditors whom likely would have never received a penny if the consumers were to file bankruptcy.

Only consumers and small businesses with at least $10k in unsecured debt will be eligible for legitimate debt settlement programs . They also must be experiencing a legitimate financial hardship to qualify. Debt settlement is seen a viable option to filing bankruptcy and only individuals who are struggling financially should enter in such a program.

It's important to know how to find the legitimate debt settlement programs and avoid those that may cause more harm than good. Luckily with this new legislation most of the shady companies will be pushed out of the market. Still it is important to ensure a debt relief company is certified and legally backed. The easiest way to do this is to use a Free Debt Relief Network . They investigate and only recommend the very best companies that are established and have proven results.

Check out the following link to get help from a free debt relief network. They will go over all of your debt relief options and help you determine which option makes the most financial sense for you:

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