Obama Credit Card Reform Act - How To Take Advantage And Get Out Of Credit Card Debt

Online, July 28, 2010 (Newswire.com) - In the May of 2009, United States President, Barack Obama, requested the Congress to pass an enactment that would improve the status of accountability in the credit creation sector. The main field of business that was to be affected by this act was that of credit cards. The actual name of the act is Credit Card Accountability Responsibility and Disclosure Act of 2009 however many just refer to it as the Obama Credit Card Reform Act. The general purpose of this act was to prevent credit card companies from raising interest rates as well as having them provide more disclosures. It has however had other implications on the market.

Credit card companies are in business to take your money. Late payment fees, high interest rates and over the limit fees are just some of the tactics that credit card companies use to take your money. Each of these tactics brings in billions of dollars each year and has been pickpocketing consumers for over a decade now. The Obama Credit Card Reform Act will help provide tighter regulations for these charges.

Consumer credit card debts are at all-time highs. This is really no surprise considering the high interest rates and relaxed lending standards over the past decade. Obama's Credit Card Reform Act takes the first step in addressing the major issues with credit card companies.

There is however still a big problem in the credit card debt markets. The Obama Credit Card Reform Act tightened the rules for credit card companies but many debtors simply can't afford to pay back their balances. Delinquencies are on the rise and many consumers can barely make their monthly minimum payments. Bankruptcy filings are reaching unprecedented levels and credit card companies are expected to lose millions in the coming years.

When consumers file bankruptcy the credit card company is usually last in line to collect and often takes a complete loss. In order to avoid a complete loss with bankruptcy, credit card companies have been negotiating credit card debt settlements . A credit card debt settlement is basically a meeting of the minds between the creditor and debtor. The average debt settlement in 2009 was negotiated for %0% of the actual debt balance. This is typically the last step before bankruptcy but at the end of the day it benefits both the debtor and the credit card company.

Only consumers that are experiencing a legitimate financial hardship and have at least $10k in unsecured debt will be eligible for a debt settlement. Although it is possible to negotiate directly with the creditor, most consumers hire a debt settlement negotiation company to manage the process. Professional debt negotiators will have established relationships with all the major creditors and 99% of the time will be able to get a better settlement.

It is very critical for consumers to know how to locate legitimate debt settlement companies that have a proven track record in settling consumer debts. The easiest way to find legitimate companies is to visit a Free Debt Relief Network . There, consumers will be able to locate the best companies in the country and also receive a free debt consultation to determine what the best debt relief option is. These networks are free to use and have helped thousands of consumers avoid being ripped off.

To locate the top performing debt settlement companies in your area for free debt relief advice check out the following link:

Free Debt Relief Help