Credit Card Debt Settlement Cases On The Rise As Consumers Continue To Take On High Interest Credit Cards

Online, February 15, 2011 (Newswire.com) - Several recent studies have indicated that consumers continue to rack up massive credit card debt. With the credit markets becoming more accessible, consumers are once again able to get credit like they could before the credit crises of 2008. The problem is however that most of the consumers getting new credit cards have below average credit and therefore are taking higher interest rates. These high interest rates eventually lead to unmanageable credit card balances and most financial experts predict an increase in credit card debt settlement filings throughout 2011.

The Federal Trade Commission recently passed consumer protection laws concerning credit card debt relief . These laws ban debt settlement companies from collecting upfront fees. Now consumers that enter into a debt settlement program will not have to pay a single penny unless there debts are settled for a minimum performance standard. This goes a long way in making debt settlement a legitimate option for credit card debt relief.

The debt settlement option is only intended for individuals and small businesses that are experiencing a legitimate financial hardship and have at least $10k in unsecured debt. It is seen as a bankruptcy alternative and is only intended for those that are struggling to pay their monthly debts.

Credit card debt settlement used to be a very risky option for getting out of debt. Now however it is much less risky. Consumers will no longer have to worry about paying upfront fees and seeing no results. If they do enter a debt settlement program and their debts aren't cut by at least 35%, they won't have to pay fees to the debt relief company. The new federal laws have essentially transferred the risk from the consumer to the debt relief company.

Credit card debt relief programs do work when done by the right company. The best companies have established relationships with all the major creditors and can typically get a better settlement deal than consumers can by themselves. If you have over $10,000 in unsecured debt and are experiencing a legitimate financial hardship then a debt settlement can make financial sense. While you can expect to have your credit negatively effected in the short run, this is a trade off to be able to have 40-60% of your unsecured debts eliminated.

Check out the following link to find legitimate credit card debt relief programs in your area:

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