Credit Card Debt Relief - How New Bankruptcy Laws Make Debt Settlement The Only Option For Many

Online, July 6, 2010 (Newswire.com) - Credit card debt is something that almost every American can relate with. Coming off one of the worst recessions in American history many consumers find themselves unable to pay their bills and searching for debt relief. In the past, many of these consumers would have filed bankruptcy for debt relief. Bankruptcy however has become much less favorable as a result of the new laws passed in 2005. These new bankruptcy laws made the process much more difficult and consumers are now searching for legitimate debt relief options .

Many consumers that are experiencing a financial hardship and have at least $10k in unsecured credit card debt are opting for Debt Settlement . Debt settlement "debt negotiation" is where consumers are able to pay back a percentage of their credit card debt and the creditor agrees to forgive the rest. This is typically the last option before filing bankruptcy. Creditors will agree to take partial payment if they believe the consumer is a legitimate candidate for bankruptcy because if the consumer were to declare bankruptcy they would likely receive nothing.

There are more Americans deeply in credit card debt than at any other point in our history. This is mainly due to the irresponsible and unregulated lending practices over the last decade. For consumers with $10k or more in credit card debt it will take nearly an entire lifetime to pay back the debt in full. Credit card companies are jacking up their interest rates making even the monthly minimums difficult to pay for many. If consumers are struggling to pay their monthly payments or just don't want to spend their whole lives trapped in debt they often opt for debt settlement instead of filing bankruptcy.

Settling your debt through a debt negotiation process does not come without consequence. Consumers will receive a short term drop in their credit scores and an increase in collection calls. A Credit Card Debt Settlement will typically affect a consumers' credit score for 2-4 years while bankruptcy will affect a credit score for at least 7 years. Any debt settlement company that says credit scores will not be affected are not being truthful and probably not worth doing business with. Consumers who opt for debt settlement ultimately make the decision that they'd rather eliminate a bunch of their unsecured debt rather than have a high credit score.

Finding legitimate debt relief companies is not that difficult but consumers must know where to look. It would be wise to utilize a debt relief network that will qualify the companies for you and ensure that they are legitimate and have proven themselves. To locate the top performing debt settlement companies in your state check out the following link:

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