Credit Card Debt Relief Programs - How New Federal Laws Make It Easier To Settle Bad Credit Debt
Online, December 27, 2010 (Newswire.com) - Credit card debt relief programs have been around for over a decade however just until recently they were probably not in your best interest. Now however, thanks to new federal laws, it is much easier to settle your bad credit card debt.
The new federal laws that went into effect on October 27th, 2010, regulate these credit card debt relief programs and ban them from collecting upfront fees. Now they have to actually settle your debt for a minimum percentage (typically 35%) or you won't have to pay them a single dime. This regulation goes a long way in making debt settlement one of the more appealing debt relief options on the market.
If you have over $10,000 in unsecured credit card debt and are going through a legitimate financial hardship then a debt settlement can make financial sense. This however is only intended for individuals or small businesses that are really struggling to pay their bills. Just because you want get bailed out of paying back your credit card bills does not mean that you'll qualify. If you do qualify however you can have over 60% of your unsecured debts completely forgiven.
With more and more consumers struggling to pay their bills, creditors of unsecured debt such as credit card companies, have no choice but to agree to these settlement deals. They know that if your were to declare bankruptcy they would likely receive little to none of their money back. Knowing this, if they believe you will file bankruptcy, they will be more than happy to settle and at least collect some of their money back.
Nearly all the shady debt relief services have been shut down due to these new federal laws. The companies that made a business off collecting upfront fees know they cannot survive with these new regulations. The legitimate debt settlement companies however will stay in business and ultimately benefit from this legislation.
Debt settlement is seen as a legitimate alternative to fining 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
