National Credit Card Debt Relief - How New Laws Help You Avoid Bankruptcy And Eliminate Credit Debt
New credit card debt relief laws passed by the Federal Trade Commission just went into place. These laws ban debt relief companies from collecting upfront fees and provide much more protection on behalf of consumers.
Online, February 1, 2011 (Newswire.com) - Credit card debt bankruptcy continues to be a major concern for the American public. Coming one of the worst recessions since the Great Depression, there are more Americans deeply in debt than ever before. To help the American economy recover, new federal laws were put in place help consumers avoid bankruptcy and eliminate a percentage of their unsecured credit debt.
On October 27th 2010, new credit card debt relief laws passed by the Federal Trade Commission went into place. These laws ban debt settlement companies from collecting upfront fees and provide much more protection on behalf of consumers. Now when a consumer or small business enters into a credit debt settlement program they will not have to pay a dime until their debts actually settle. Typically, the settlement services must completely eliminate at least 35% of the debt balance in order to collect a fee. Therefore, if a consumer has a credit card balance of $20,000, the settlement company must be able to eliminate at least $7,000 of that balance in order to collect a fee. They don't settle, you don't pay.
These new federal laws have put 90% of the shady debt relief services out of business. The companies that made a killing by simply collecting upfront fees know they cannot survive under the recently passed legislation. The legitimate debt relief companies however will ultimately benefit from these new laws. The debt settlement companies that have a proven track record will have enough confidence to collect their fee on the back end when the debts actually settle.
Debt settlement is only intended for consumers and small businesses that are going through a legitimate financial hardship and have at least $10,000 in unsecured debt. The ideal candidates would be struggling to pay their credit card bills and would like to avoid bankruptcy. This used to be a very risky decision for getting out of debt but now it is a much safer option with the new credit card debt relief laws in place.
Before speaking directly with a debt settlement company it would be wise to visit a free debt relief network. They will go over all your debt relief options for free. FreeDebtSettlementAdvice is one of the largest and most respected debt relief networks on the marketplace. Check out the following link to speak with a certified debt relief specialist for free debt help.
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Tags: bankruptcy, credit card debt bankruptcy, credit card debt relief, debt relief companies, debt relief laws, debt settlement
