Credit Card Debt Relief - How New Federal Laws Protect Consumers Seeking Debt Relief
These new federal laws have put 90% of the shady debt relief services out of business. The companies that made a killing by simply collecting upfront fees know they cannot survive under the recently passed legislation.
Online, March 11, 2011 (Newswire.com) - Credit card debt relief programs have come under new restrictions thanks to the recent laws passed by the federal trade commission. These laws provide much more protection for consumers and small businesses seeking credit card debt relief . Now debt relief programs cannot collect a fee until they successfully settle the client's debt balance.
These new federal laws have put 90% of the shady debt relief services out of business. The companies that made a killing by simply collecting upfront fees know they cannot survive under the recently passed legislation. The legitimate companies however will ultimately benefit from these new laws. The debt settlement companies that have a proven track record will have enough confidence to collect their fee on the back end when the debts actually settle.
There are more consumers and small businesses in need of credit card debt relief today than there has ever been before. Many consumers simply cannot afford to pay back their credit card debt and are on the verge of filing bankruptcy. For those that are on the verge of bankruptcy it would make more financial sense to try and make a debt settlement deal before filing. Due to the massive amount of people experiencing a financial hardship, credit card companies are having no choice but to make debt settlement deals.
It's important to understand the risk of seeking professional debt relief. Credit card debt relief programs are not intended for individuals simply looking to get bailed out of their debts. You must be experiencing a legitimate financial hardship and be struggling to meet your payments on time. This will have a negative impact on your credit score and only makes sense for those that are on the verge of bankruptcy.
Credit card debt relief programs do work when done by the right company. The best companies have established relationships with all the major creditors and can typically get a better settlement deal than consumers can by themselves. If you have over $10,000 in unsecured debt and are experiencing a legitimate financial hardship then a debt settlement can make financial sense. While you can expect to have your credit negatively effected in the short run, this is a trade off to be able to have 40-60% of your unsecured debts eliminated.
Check out the following link to find legitimate credit card debt relief programs in your area:
