Credit Card Debt Relief - How New Federal Laws Help Consumer Debt Relief

Online, February 14, 2011 (Newswire.com) - As Americans continue to dig themselves further and further into credit card debt, the need for debt relief has skyrocketed. Unfortunately, many illegitimate companies have taken advantage of desperate consumers over the past few years due to the lack of regulation within the debt relief industry. Now however, thanks to new federal laws, consumers seeking debt relief will have much more protection and a real opportunity to get out of credit card debt.

On October 27th 2010, new credit card debt relief laws passed by the Federal Trade Commission went into place. These laws ban debt settlement companies from collecting upfront fees and provide much more protection on behalf of consumers. Now when a consumer or small business enters into a credit debt settlement program they will not have to pay a dime until their debts actually settle. Typically, the settlement services must completely eliminate at least 35% of the debt balance in order to collect a fee. Therefore, if a consumer has a credit card balance of $20,000, the settlement company must be able to eliminate at least $7,000 of that balance in order to collect a fee. They don't settle, you don't pay.

There are more consumers and small businesses in need of credit card debt relief today than there has ever been before. Many consumers simply cannot afford to pay back their credit card debt and are on the verge of filing bankruptcy. For those that are on the verge of bankruptcy it would make more financial sense to try and make a debt settlement deal before filing. Due to the massive amount of people experiencing a financial hardship, credit card companies are having no choice but to make debt settlement deals.

Credit card debt settlement used to be a very risky option for getting out of debt. Now however it is much less risky. Consumers will no longer have to worry about paying upfront fees and seeing no results. If they do enter a debt settlement program and their debts aren't cut by at least 35%, they won't have to pay fees to the debt relief company. The new federal laws have essentially transferred the risk from the consumer to the debt relief company.

Before speaking directly with a debt settlement company it would be wise to visit a free debt relief network. They will go over all your debt relief options for free. FreeDebtReductionHelp.com is one of the largest and most respected debt relief networks on the marketplace. Check out the following link to speak with a certified debt relief specialist for free debt help.

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