Credit Card Debt Settlement Act of 2010 - Why Credit Card Debt Is Now Easier To Eliminate
The Credit Card Debt Settlement Act of 2010 has created a legitimate opportunity for Americans to eliminate a percentage of their credit card debt. New regulations placed on debt settlement companies has made it a much better deal for consumers.
September 1, 2010 (Newswire.com) - Americans from all walks of life are battling huge amounts of credit card debt. With unemployment rising monthly and the ability to pay off the mountain of debt getting harder, Americans are looking for alternatives. The three top options are debt consolidation, debt settlement and credit counseling. Thanks to new debt settlement and relief laws passed in July 2010, credit card debt settlement has become a much more viable alternative.
Debt settlement is usually done by a company on behalf of the consumer. The company negotiates on behalf of the consumer, attempting to lower the total amount due. This is a legitimate alternative to bankruptcy but only makes financial sense for consumers experiencing a legitimate financial hardship.
In the past, debt settlement companies were known to collect large upfront fees and negotiate a poor settlement. Time and time again consumers were paying the debt settlement companies for a service that was promised but not delivered. Well things are different now.
The Credit Card Debt Settlement Act of 2010 has changed these unsavory practices. Thanks to the new law, a debt settlement company cannot collect a fee until they have settled the debt at an agreeable amount. If a company cannot negotiate an agreeable settlement they will not collect a fee. Bottom line. Only the legitimate debt settlement companies will be able to survive.
A legitimate debt settlement company will have established relationships with the all the major credit card companies and other creditors of unsecured debt. Because of these relationships they can work with the creditors and the consumer, making sure that both parties are satisfied.
Debt settlement is a hardline approach to debt relief and is not for everyone. The consumer must be $10,000 or more in unsecured debt and suffer a genuine financial hardship to qualify for most legitimate debt settlement programs . However it is clearly a better option than filing bankruptcy. Bankruptcy will stay on your credit report for at least 7 years and should always be the last option for debt relief.
There are also other debt relief options available such as credit counseling and debt consolidation. If you are struggling with debt and have a legitimate financial hardship it would be wise to speak with a debt relief specialist that will go over all your options for free.
Check out the following link for a free debt relief consultation:
Or Call: 877-853-6466