Credit Debt Settlement Act 2010 - How New Federal Laws Help Consumers Eliminate Credit Card Debt

Online, December 2, 2010 (Newswire.com) - The Credit Debt Settlement Act 2010 was recently passed by the FTC of the United States. These federal laws prohibit debt relief programs from collecting upfront fees therefore making it a much better option for consumers and small businesses. Now when you join a debt settlement program you will not have to pay a dime until your balance actually settles.

This federal legislation which became effective on October 27th 2010, goes a long way in making debt relief a real possibility for consumers and small business. Now consumers who enter a debt settlement program will be taking far less risk as they will not be responsible for paying until they actually see real results and their debt balance is settled.

Typically the average minimum performance a debt settlement company must adhere to is 35%. So if you enter into a settlement program, and the company is not able to eliminate at least 35% of your balance, you will not be responsible for paying them a single dime. So if you have a $40,000 credit card balance and the settlement company is not able to eliminate $14,000 of it, you won't be responsible for paying them a fee.

The Credit Debt Settlement Act 2010 has shut down all the shady debt relief companies. They know they cannot stay in business without collecting upfront fees. The legitimate debt settlement companies however will have enough confidence to collect their fee on the backend after the debt balance is settled. The companies with a proven track record will ultimately benefit from this legislation and will continue to provide a legitimate service to consumers experiencing financial difficulty.

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.

Debt settlement is not the only debt relief option. It would be wise to speak with a debt relief specialist that can go over all your options with you. Check out the following link to get free debt help from a certified debt relief specialist.

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