Credit Card Debt Relief Act 2010 - How Consumers Can Avoid Bankruptcy And Legally Settle Credit Debt

Online, September 29, 2010 (Newswire.com) - New laws recently passed by the Federal Trade Commission give consumers a legitimate option to avoid bankruptcy and legally settle credit debt. The Credit Card Debt Relief Act 2010 mainly targets debt relief companies and bans the practice of collecting upfront fees. Therefore now when a consumer enters into a debt settlement program they will not have to pay a dime until their debts are actually settled. This new legislation makes the debt settlement process much more legitimate and less risky for consumers.

Before the Credit Card Debt Relief Act was passed, debt relief companies were not held accountable. They would promise consumers and small business to eliminate at least 50% of their unsecured debt but often times they failed to do so and still kept the upfront fees. This is not possible anymore. If the debt settlement company is unable to negotiate a successful debt settlement deal, the consumer doesn't have to pay a fee.

With these new laws, consumers with over $10,000 in unsecured debt who are facing financial hardship now have very real and legitimate option for achieving debt relief. Credit card companies and other creditors of unsecured debt are worried about the rising delinquency rates and are having no choice but to agree to debt settlement deals.

There really has never been a better time to legally settle credit card debt or any other form of unsecured debt. Creditors of unsecured debt are willing to make deals. They know that if the consumer were to file bankruptcy they would likely receive little to none of their money back. With more consumers and small business on the verge of bankruptcy than ever before, creditors are having no choice but to negotiate debt settlement deals. 50% of their money back is better than nothing.

The easiest way to locate legitimate debt settlement companies is to use a Free Debt Relief Network . These networks will ensure that the debt settlement company you are provided is legitimate and is a respected member of all the regulatory commissions such as The Association Of Settlement Companies and the BBB. Most free debt relief networks will provide a free debt consultation to help the consumer determine what debt relief option is most appropriate.

There is no magic bullet to get out of debt however debt settlement can a good option for consumers who are experiencing financial hardship and have at least $10k in unsecured debts.
To locate legitimate debt settlement companies through a free debt relief network check out the following link:

Free Debt Relief Advice