Credit Card Debt Relief – How New Laws Make Debt Settlement A Much More Legitimate Option

Oct. 12, 2010 - PRLog -- The credit card debt relief market used to be littered with shady debt settlement companies. However new laws passed by the FTC on July 28th 2010 have made the debt settlement process much more legitimate. These debt relief companies can no longer collect upfront fees. This means that consumers who enter into a debt settlement program will not have to pay a dime until their debts are actually settled.
The risk of credit card debt settlement has been taken off the back of the consumer and placed upon the debt settlement companies. They don’t get paid unless they successfully settle the debts. This will undoubtedly make the process more effective as well. The negotiators will be much more motivated to negotiate a successful settlement as their fee is now on the line.
Coming off one of the worst recessions in United States history there are more people currently in credit card debt than ever before. Credit card companies have been recklessly lending credit to the American public and collecting millions of dollars in interest payments. Now they are left with millions of Americans who simply cannot afford to pay back their debt. In an effort to prevent bankruptcy filings, credit card companies and other creditors of unsecured debt are making a significant amount of debt settlement deals.
Debt settlement is not for everyone. It is only intended for individuals that are legitimately experiencing a financial hardship and have at least $10k in unsecured debt. They must prove to their creditors that they are unable to pay back the entire balance but are prepared to pay back at least a percentage of the overall debt. If creditors believe the consumer is financially incapable of paying back the debt, then most of the time they will accept the debt settlement offer because if the consumer were to declare bankruptcy they would be left with nothing.
In order to qualify for a debt settlement consumers must have at least $10k in unsecured debt and be experiencing a legitimate financial hardship. This option is considered an alternative to filing bankruptcy. It will still have a negative impact on your credit score but not nearly as bad as filing bankruptcy. It is very important however that consumers know how to locate legitimate debt relief services.
The best way to locate legitimate debt settlement companies is through a free debt relief network. They are the watchdog of the debt relief industry and only recommend the top performing companies that have a proven track record of negotiating successful debt settlement deals. The top debt relief networks will have several debt relief specialist that can go over all your options for free and point you in the right direction.
Check out the following link to speak with a debt relief specialist and determine what debt relief tactic makes the most financial sense for your situation.
Free Debt Advice
(http://www.FreeDebtReductionHelp.com)

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If you are struggling with paying back your credit card debt or any other unsecured debts there is legitimate help out there. Debt settlement usually makes financial sense for consumers with over $10k in unsecured debt. There are also other options available. To talk with a debt relief counselor for free help check out the following link:
Free Debt Advice
(http://www.FreeDebtReductionHelp.com)
Or Call - 877-853-6466