Credit Card Debt Relief - How New FTC Laws Make Debt Settlement A Better Option

Online, August 9, 2010 (Newswire.com) - The risk of entering into a debt settlement program has been shifted from the consumer to the debt relief company. New laws recently passed by the FTC have banned debt settlement companies from collecting upfront fees thereby making debt settlement a legitimate option for personal credit card debt relief. Consumers who are experiencing a legitimate financial hardship and want to avoid bankruptcy now have a legitimate option in debt settlement.

Coming off one of the worst recessions in U.S. history there are more consumers currently in credit card debt than at any other point in history. The lending standards over the past decade have been down right irresponsible and many consumers are now unable to pay back their massive credit card balances. There are several personal credit card debt relief options available however new laws recently passed by the FTC have made debt settlement one of the most attractive.

Entering into a debt settlement program used to be a very risky decision because there was no guarantee that the debts would actually settle. With the recently passed laws passed by the FTC, consumers now will not have to pay a dime until their debts are actually settled.

Debt settlement companies used to thrive on collecting large upfront fees before actually settling the credit card debt balances. The new laws ban debt settlement companies from collecting upfront fees which will put several debt settlement services out of business. Only the legitimate services with a track record of successfully settling consumer debts will be able to survive. The legitimate services should have enough confidence to collect the fee on the back end.

There are other personal credit card debt relief options available such as credit counseling, debt consolidation, and bankruptcy. Debt settlement is considered the best alternative to filing bankruptcy and is only intended for consumers that are experiencing a legitimate financial hardship and have at least $10k in unsecured debt. Bankruptcy should always be the last option for debt relief.

The legitimate debt settlement companies that do survive with these new laws in place will undoubtedly be more effective. They don't get paid until the consumer's debt is settled therefore they will be much more motivated. The new performance based fee structure is indeed a victory for debt ridden consumers. The risk has been taken out of their hands and put into the hands of the debt settlement companies. For consumers on the verge of bankruptcy, debt settlement is now clearly the best option for credit card debt relief.

If you have over $10k in unsecured debt and are experiencing a legitimate financial hardship it would be wise to speak with a debt relief specialist that will go over all your options for free. Check out the following link for a free debt relief consultation:

Free Debt Relief Help

Or Call: 877-853-6466