Credit Card Debt Settlement - How New Federal Laws Make It Easier To Settle Credit Debt
Online, October 31, 2010 (Newswire.com) - Credit card debt settlement cases have significantly grown over the past 5 years however the process just became much more legitimate thanks to new federal laws. The Federal Trade Commission recently passed new laws which regulate the debt settlement industry and place tighter restrictions on the way they conduct business. Now consumers that enter into a debt settlement program won't have to pay a dime until their debts successfully settle.
This new legislation which went into effect October 27th 2010 make credit card debt settlement a much less risky option for consumers seeking debt relief. These new laws take the risk off the back of the consumer and place it on the debt settlement companies. If they can't reach a successful deal during negotiation they don't get paid. Bottom line.
Only the legitimate debt settlement companies will survive this legislation. The companies that have made a business out of collecting upfront fees without providing any real service will not be able to survive. However, the companies that have been successfully settling debts will have enough confidence to collect their fee when they reach a successful settlement.
Only consumers with at least $10,000 in unsecured debt that are experiencing a legitimate financial hardship should consider a credit card debt settlement. While it will have a short term negative impact on your credit you will be able to eliminate around 50% of your balance.
For consumers that are struggling to make their minimum payments there's really only two options. Debt settlement and bankruptcy. Considering these new laws there is no doubt that debt settlement is a better option than filing bankruptcy.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a Free Debt Relief Network which will locate the best performing companies in your area for free.
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Tags: bankruptcy, credit card debt, credit card debt settlement, debt relief, debt settlement, unsecured debt