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Legally Settle Credit Card Debt – How The Credit Card Debt Relief Act 2010 Can Help
Legally Settle Credit Card Debt – How The Credit Card Debt Relief Act 2010 Can Help
Credit card debt is something that almost every American can relate to. The lending practices of this country have been irresponsibly relaxed over the past two decades and now many Americans are struggling to pay back what they’ve borrowed.
Columbus,
OH,
United States of America
(prbd.net)
26/09/2010
"Credit card debt is something that almost every American can relate to. The lending practices of this country have been irresponsibly relaxed over the past two decades and now many Americans are struggling to pay back what they’ve borrowed. "
September 26, 2010 - Credit card debt is something that almost every American can relate to. The lending practices of this country have been irresponsibly relaxed over the past two decades and now many Americans are struggling to pay back what they’ve borrowed. On July 28th 2010, the FTC passed new laws which make credit card debt relief a better deal for consumers. These new laws give consumers who are experiencing a financial hardship a real option to legally settle credit card debt.
Now, consumers who enter into a credit card debt settlement program will not have to pay a fee until their debts actually settle. Before this legislation, consumers had to pay large upfront fees to debt relief programs with no guarantee that their debts would actually settle. This was a very risky decision and consumers ran the real risk of being ripped off. Things are different now. If the debt settlement company doesn’t legally settle credit card debt for the consumers they don’t have to pay a dime.
The Credit Card Debt Relief Act 2010 will put all the shady debt relief services out of business. Only the legitimate debt settlement companies that have actually been successfully settling debts will be able to survive. They will have enough confidence to collect their fee on the back end when the debts actually settle.
The debt settlement process does work. The typical settlement is negotiated for 50% of the actual balance. In 2009, over $1 billion in unsecured debts were settled which resulted in $600 million being eliminated off the books of consumers and approximately $400 million being collected for creditors whom likely would have never received a penny if the consumers were to file bankruptcy.
Creditors know that if a consumer files for Ch. 7 bankruptcy they are likely to receive none of their money back. Considering there are more consumers on the verge of bankruptcy than ever before, creditors of unsecured debt are having no choice but to agree to debt settlement deals. 50% of their money back is better than nothing.
Debt settlement is a viable alternative to bankruptcy and makes sense for consumers experiencing a legitimate financial hardship. There are also other debt relief options available such as credit counseling or debt consolidation. It would be wise to speak with a debt relief specialist that can go over all your options for free. Check out the following link for a free consultation from a certified debt relief specialist: