Credit Card Debt Settlement Act 2010 - How New Federal Laws Can Help You Settle Credit Card Debt

Online, October 20, 2010 (Newswire.com) - Credit card debt is something that almost every American can relate to. For the last two decades credit card companies have been recklessly granting unlimited credit lines to American consumers and small businesses. They were more than happy to put consumers into debt and collect high interest payments but now they are running into a serious problem. Many consumers simply cannot afford to pay back their credit card debt. This has become a serious issue and recently new federal laws were passed to help consumers deal with their credit card debt.

The Credit Card Debt Settlement Act 2010 was recently passed by the Federal Trade Commission. These laws effectively ban debt settlement companies from collecting upfront fees from their clients. Now, consumers or small businesses that enter into a debt settlement program will not have to pay a dime until their debts actually settle. This makes it much less risky for consumers to try and settle credit card debt.

These new laws make the debt settlement process much more legitimate and an overall better deal for clients. In the past, many consumers were paying upfront fees and had no assurance that their debts would actually settle. Debt relief companies would make promises they simply wouldn't fulfill and consumers were left with the bill. This is not possible any more.

Considering the fact that there are more consumers on the verge of bankruptcy than ever before, creditors are making more debt settlement deals than any other time in history. Credit card companies and other creditors of unsecured debt carry the serious risk of losing millions on delinquent accounts. Debt settlement is a legitimate way for creditors to collect money from these delinquent accounts. Plus they get a tax break from the government on the portion they settled off.

Debt settlement is a legitimate alternative to bankruptcy but not all consumers will be eligible for it. In order to qualify the consumer must be at least $10k in unsecured debt and also be able to prove a legitimate financial hardship such as a loss of job or medical issue. There are Free Debt Relief Networks that help consumers locate TASC certified debt settlement companies as well as provide a free consultation to go over all available debt relief options.

Check out the following link to find legitimate debt settlement companies through a free debt relief network:

Free Debt Reduction Help