Credit Card Debt Settlement Act 2010 - Why Debt Settlement Is Now A Legitimate Debt Relief Option

Online, October 27, 2010 (Newswire.com) - Credit card debt settlement used to be a very risky option for debt relief. Not so much anymore. The Credit Card Debt Settlement Act 2010 went into effect yesterday and now consumers that enter into a debt settlement program will not have to pay a fee until their debts are actually settled. This new legislation takes much of the inherent risk away from the consumer and makes debt settlement a much more legitimate option to get credit card debt relief .

Before this legislation way passed, consumers ran the real risk of having to pay upfront fees and getting nothing in return. Countless consumers paid upfront fee to debt relief companies that promised to cut their debt balances in half but failed to deliver. Consumers had no protection and as a result many of them got ripped off and paid large fees to companies that did them more harm than good. This is not possible any more.

Only legitimate debt settlement companies will survive this legislation. The shady debt relief services that made a killing simply collecting upfront fees without providing any real service have already closed their doors as they know they can't possibly survive. The legitimate companies however that have actually been negotiating and settling consumer debt balances will have enough confidence to collect their fee on the back-end when to debts actually settle.

Debt settlement is not for everyone. It is only intended for individuals that are legitimately experiencing a financial hardship and have at least $10k in unsecured debt. They must prove to their creditors that they are unable to pay back the entire balance but are prepared to pay back at least a percentage of the overall debt. If creditors believe the consumer is financially incapable of paying back the debt, then most of the time they will accept the debt settlement offer because if the consumer were to declare bankruptcy they would be left with nothing.

The easiest way to locate legitimate debt settlement companies is to use a Free Debt Relief Network . These networks will ensure that the debt settlement company you are provided is legitimate and is a respected member of all the regulatory commissions such as The Association Of Settlement Companies and the BBB. Most free debt relief networks will provide a free debt consultation to help the consumer determine what debt relief option is most appropriate.

There is no magic bullet to get out of debt however debt settlement can a good option for consumers who are experiencing financial hardship and have at least $10k in unsecured debts.

To locate legitimate debt settlement companies through a free debt relief network check out the following link:

Free Debt Relief Advice