Federal Credit Card Debt Relief Laws - How New Laws Make Debt Settlement A Better Option

Online, November 1, 2010 (Newswire.com) - Just one week ago new federal credit card debt relief laws were passed which transforms the way debt settlement companies conduct business. This legislation effectively bans debt relief companies from collecting upfront fees. Now consumers that enter into a debt settlement program will not have to pay a dime until their debts are actually settled. This is indeed a victory for consumers with too much credit card debt that are seeking legitimate debt relief options.

The new federal credit card debt relief laws were passed for good reason. It was simply to easy for companies to collect upfront fees from consumers and not perform or follow through on their promises. There was no regulations in place for these companies and far too many of them took advantage of this and ripped their clients off. They are not able to do this anymore. If they don't perform they don't get paid.

Before these laws were passed entering into a debt settlement negotiation program used to be a very risky option and consumers ran the real possibility of paying large upfront fees without getting any real service in return. There was no gaurantee although many companies would promise they could cut a clients debt balance in half. Many companies took advantage of this business model and simply collected fees without providing any real service. This is not possible anymore.

Only consumers with at least $10,000 in unsecured credit debt should consider using a debt settlement program. While entering such a program will have a short term negative impact on your credit score it is still clearly a better option than filing bankruptcy. Bankruptcy will hurt your credit score for at least 7 years while debt settlement typically only effects your credit for 3 years on average.

It is very important to know how to locate legitimate debt settlement companies . While this new federal credit card debt relief laws will push out most of the shady companies there are still those companies out there that will try and mislead you.

The easiest way to locate legitimate and the most experienced debt relief services is to visit a Free Debt Relief Network . They are the consumer watchdogs of the debt relief industry and provide only the top notch services. They will also provide debt relief consultations and will go over all your options for free. Check out the following link to speak with a certified debt specialist from the top rated debt relief network:

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