Credit Card Debt Settlement Programs - How New Federal Laws Help Consumers In Credit Card Debt
Online, January 21, 2011 (Newswire.com) - New laws recently passed by the Federal Commission of the United States, make credit card debt settlement programs a much more legitimate option for consumers and small businesses in need of debt relief. It is now illegal for debt settlement program to collect their fees upfront. Therefore, much of the inherent risk of entering a debt relief program has been eliminated. If they don't perform and settle your debts, you don't pay.
These new federal laws have put all the shady debt relief companies out of business. They simply cannot survive without collecting upfront fees. The Legitimate Debt Settlement Companies however will ultimately benefit from this legislation. The companies that have a proven track record of negotiating successful settlement deals will have enough confidence to collect their fees on the back end when the debts actually settle.
Credit card debt settlement programs are only intended for individuals that are struggling to pay their bills each month. If you are struggling with meeting the minimum monthly payment or if you are having to choose between what debts to pay every month, then debt settlement can make financial sense.
Credit card companies and other creditors of unsecured debt are very concerned about the rising rates of delinquent accounts. The last thing they want their debtors to do is file bankruptcy because they know if a consumer is accepted for a Ch. 7 bankruptcy they will likely collect little to none of their money back. Knowing this, if they believe you are a legitimate candidate for bankruptcy they will be more than happy to collect 50% of their money back rather than take a complete loss.
There are also other debt relief options available such as credit counseling or debt consolidation. If you are struggling with paying credit card debt every month it would be wise to speak with a debt relief specialist who can go over all your options for free. Whether its debt settlement or another debt relief option, it's always wise to get an unbiased and professional opinion.
Check out the following link for free debt help from a certified debt relief specialist:
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Tags: bankruptcy, credit card debt bankruptcy, credit card debt relief, credit card settlement programs, debt relief, debt relief companies, debt relief laws
