Credit Card Debt Relief Act 2010 - Why Credit Card Companies Are Making Debt Settlement Deals

Online, September 23, 2010 (Newswire.com) - Credit card debt is something that almost all Americans can relate too. With easy access to credit, many consumers have over extended themselves over the past couple decades and are now left with massive debt balances. There are more consumers on the verge of bankruptcy than ever before and credit card companies are feeling the pain. They usually take a complete loss when a consumer files bankruptcy and therefore are making more debt settlement deals than ever before.

Debt settlement used to be a very risky decision for consumers seeking credit card debt relief . However on July 28th 2010 new laws were passed by the FTC which made debt settlement a much more legitimate option for consumers and small businesses. The Credit Card Debt Relief Act 2010 effectively bans debt settlement companies from collecting upfront fees. Now consumers don't have to pay a dime until their debts actually settle. This indeed makes the process more legitimate and a far less risky option for credit card debt relief.

For consumers making only the minimum payments, it can take nearly a lifetime to pay back their credit card debt. Some consumers can barely afford to make the minimum payments. Debt settlement can be an effective way to set up a payment plan with a lower payment and eventually settle the debt balance at a reduced rate.

Only consumers and small businesses who have at least $10,000 in unsecured debt and are experiencing a legitimate financial hardship will qualify for Legitimate Debt Settlement Programs . The risk of entering debt settlement programs has been significantly reduced with the passage of these new FTC laws and most people will now consider this a legitimate debt relief option.

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.

There are also other credit card debt relief options available such as credit counseling or debt consolidation. It would be wise to speak with a debt relief specialist that can go over all your options for free. Check out the following link to speak with a certified debt relief specialist for a free consultation:

Free Debt Relief Help