Debt Settlement Negotiation - Why Credit Card Companies Are Making More Debt Settlement Deals

Online, October 3, 2010 (Newswire.com) - Credit card debt settlement used to be a very risky decision for consumers seeking debt relief. However on July 28th 2010 new laws were passed by the FTC which made debt settlement a much more legitimate option for consumers and small businesses. These laws effectively ban debt settlement companies from collecting upfront fees. Now consumers don't have to pay a dime until their debts actually settle. This indeed makes the process more legitimate and a far less risky option for credit card debt relief.

For consumers making only the minimum payments, it can take nearly a lifetime to pay back their credit card debt. Some consumers can barely afford to make the minimum payments. Debt settlement can be an effective way to set up a payment plan with a lower payment and eventually settle the debt balance at a reduced rate.

So why would credit card companies and other creditors of unsecured debt agree to debt settlement deals? The answer is simple. They don't want you to declare bankruptcy. They know that if a consumer were to declare bankruptcy they would likely receive none of their money back. With more consumers on the edge of bankruptcy than ever before, creditors are having no choice but to agree to debt settlement deals.

Debt settlement negotiation is an aggressive debt relief tactic and does not make sense for everyone in debt. Consumers must be experiencing a legitimate financial hardship and have at least $10,000 in unsecured to qualify for most debt settlement negotiation programs.

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