Obama Credit Card Debt Relief - Fact Vs. Fiction On Obama's Debt Relief
Online, January 13, 2011 (Newswire.com) - There has been a lot of buzz lately about Obama credit card debt relief programs so what's the real story behind this? The truth is that there is no program directly sponsored by president Obama however his administration has passed a few laws that help consumers get out of credit card debt much easier than before.
Doing a simple Google search for "Obama credit card debt relief" will produce many results some of which are true and some of which are not. It is important for consumers to understand the truth behind these advertisements so they are not mislead.
Fact:
On October 27th 2010, the Federal Trade Commission passed new credit card debt relief laws which govern the way debt settlement companies can conduct business and provide much more protection for consumers that are considering entering into a debt relief program . These new laws ban the relief companies from collecting upfront fees. Therefore consumers now do not have to pay a dime until their debts are settled for at least 35% of the balance.
Fiction:
Obama is directly sponsoring a credit card debt debt relief program. He is not. He is however supportive of the new consumer protection laws that make credit card debt relief programs a much better option for consumers and small businesses.
Fact:
Debt settlement programs are now far less risky. The main risk of paying upfront fees and not getting any results has been eliminated therefore this option is much less risky than it used to be. If they don't perform, you don't pay.
Fiction:
These are government sponsored programs. Nearly all of these debt relief programs are privately owned. While the new government laws make these programs more attractive, they are not government programs.
With the passage of these new laws, nearly all the shady companies have been put out of business. Only the legitimate debt settlement companies will be able to survive without collecting upfront fees. The companies that have a proven track record in successfully negotiating settlement deals will have enough confidence to collect their fees on the back end when the debts are actually settled.
Debt settlement is seen as a legitimate alternative to filing bankruptcy. If you have over $10,000 in unsecured debt and are experiencing a financial hardship then a debt settlement can make financial sense. Check out the following link for a free consultation from a certified debt relief specialist in your area.
