Obama Credit Card Debt Relief - How To Find Legitimate Debt Relief Help

Online, February 2, 2011 (Newswire.com) - When you see ads online for Obama credit card debt relief program you should understand that Obama never came out with a sponsored debt settlement program. He did however approve of the new Federal Trade Commission laws that provide much more protection for consumers that enter into credit card debt relief programs . Before these laws were passed, debt settlement was a very risky option however now it has become a much better way to avoid bankruptcy and settle credit card debt for less.

The new debt settlement laws passed by the Federal Trade Commission on October 27th 2010 provide much more protection to consumers and small business seeking debt relief. Now debt settlement companies are not allowed to collect their fees upfront. They are only allowed to charge a fee when the debt has been settled with your creditors. If they fail to reach a successful settlement deal, consumers do not have to pay them a dime. This takes the inherent risk of paying upfront fees without getting results, out of the equation.

What used to be a very risky option, in joining a debt settlement program, is now much less risky. Consumers won't have to worry about getting ripped off cause they won't be paying their fees until the debts actually settle. If the debt relief companies don't settle the debt then they don't get paid. There are some companies that try to get around this by having lawyers collect fees. Theses attorney backed debt settlement programs should be avoided at all cost. Make sure to only do business with no advance fee debt settlement programs or the "NAF model". Make sure to also understand what the Obama credit card debt relief is really about.

Debt settlement is only intended for those that are experiencing a financial hardship and want to avoid filing bankruptcy. If credit card companies believe you are a legitimate candidate for bankruptcy they will be more that willing to settle your debts for less. They know that if you were to file and be accepted for bankruptcy they would likely receive little to none of their money back. Knowing this most creditors will accept 50% of your balance rather than taking a complete loss with bankruptcy.

Credit card companies and other creditors are making more debt settlement deals than ever before. If you have at least $10,000 in unsecured debt and are experiencing a financial hardship then a debt relief program could make financial sense. Before making such a decision however it would be wise to speak with a financial consultant.

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