Credit Card Debt Relief Programs - Do Any Of These Debt Relief Programs Actually Work?
It seems like you can't even turn on the radio or television without seeing someone saying they can cut your credit card debt in half. So do any of these programs actually work?
Online, December 14, 2010 (Newswire.com) - Credit card debt relief programs are one of the most highly advertised businesses today. It seems like you can't even turn on the radio or television without seeing someone saying they can cut your credit card debt in half. So do any of these programs actually work?
Up until October 27th 2010, I would have urged consumers and small businesses to stay away from these credit card debt relief programs . Many of them were shady and required large upfront fees with no guarantee that the debts would actually settle. However, on this date October 27th 2010, the Federal Trade Commission passed new laws regulating the debt settlement industry. It is now illegal for these debt relief programs to charge upfront fees. They can only charge you a fee after they reach a successful settlement deal and eliminate at least 35% of you credit card balance. So if you had $20,000 in credit card bills, they would have to eliminate at least $7,000 of that balance in order to collect a fee.
These credit card debt relief programs do work when done by the right company. The best companies with proven track records of successful settlement deals have established relationships with all the major creditors and know they can settle your debt for less. You must be qualified however to enter one of these programs. The most important this is that you are experiencing a financial hardship and have at least $10,000 in unsecured debt. The good thing for consumers is that it is much easier to find avoid the shady debt relief services because 95% of them have been put out of business with these new laws.
The legitimate debt settlement companies have no problem collecting their fee on the back end when the debts actually settle. While it will not be as profitable for them in the short run, they will ultimately benefit from the industry having a better reputation.
Debt settlement is seen as a legitimate alternative to filing bankruptcy. If you have over $10,000 in unsecured debt and are experiencing a financial hardship then a debt settlement can make financial sense. Check out the following link for a free consultation from a certified debt relief specialist in your area.
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Tags: bankruptcy, credit card debt bankruptcy, credit card debt relief, credit card relief programs, debt relief companies, debt relief laws, debt settlement
