New Debt Settlement Options - The Attorney Based Model Vs. The No Advance Fee Debt Settlement Model
With the new debt relief laws that were recently passed by the FTC, consumers now have a couple different debt settlement options. The main two options are the attorney based model and the no advance fee model. Which is best for you?
Online, November 28, 2010 (Newswire.com) - With the new debt relief laws that were recently passed by the FTC, consumers now have a couple different debt settlement options. The main two options are the attorney based model and the no advance fee model. Both have their pros and cons but which one is the best?
The attorney based debt settlement model lets consumers seeking debt relief have full protection of being legally backed by an attorney. This type of model arose after the new FTC laws were passed that ban debt relief companies from collecting upfront fees. Since the laws were not applicable to attorneys, many debt settlement companies merged with lawyers in order to bypass the new laws.
In reality, these attorney based settlement companies only used the lawyers to sign off on the paperwork and also to represent the client if they should ever be sued. The business behind the business is still the same and the debt relief companies only used the lawyers to bypass the new ban on collecting upfront fees. You will usually have to pay the lawyer an upfront retainer fee as well as pay the standard monthly fee to the settlement company.
The other and quite frankly better model is the no advance fee model. This is exactly what it sounds like. You don't pay unless the debt settlement company successfully negotiates a deal at is able to eliminate at least 35% of your unsecured debt. Only when they reach a successful settlement deal will you pay them a fee. Also in this model you have 100% control over your settlement savings account and can withdraw it at anytime without penalty. This indeed in the better option for consumers and small businesses.
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.
Check out the following link for free debt help from a certified debt relief specialist:
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Tags: bankruptcy, credit card debt, debt relief, debt relief companies, debt relief laws, debt settlement, debt settlement options
