Obama Credit Card Debt Relief - The Truth Behind Obama Debt Relief Programs
oing a simple google search for "Obama credit card debt relief" will display thousands of results, some of which are true and many others which are misleading. Here we will separate fact from fiction concerning Obama credit card debt relief.
Online, February 24, 2011 (Newswire.com) - Doing a simple google search for "Obama credit card debt relief" will display thousands of results, some of which are true and many others which are misleading. The truth is there is no credit card debt relief program that Obama directly sponsors. However, the federal government did just recently pass a new laws which provide much more protection for consumers and small businesses seeking credit card debt relief.
On October 27th 2010, new credit card debt relief laws passed by the Federal Trade Commission went into place. These laws ban debt settlement companies from collecting upfront fees and provide much more protection on behalf of consumers. Now when a consumer or small business enters into a credit debt settlement program they will not have to pay a dime until their debts actually settle. Typically, the settlement services must completely eliminate at least 35% of the debt balance in order to collect a fee. Therefore, if a consumer has a credit card balance of $20,000, the settlement company must be able to eliminate at least $7,000 of that balance in order to collect a fee. They don't settle, you don't pay.
These laws have put all of the shady debt relief companies out of business. The companies that made a killing off collecting upfront fees know they cannot not survive with these new laws in place. However, the legitimate debt settlement companies that have a proven track record of negotiating successful settlement deals will ultimately benefit from this legislation. They will have enough confidence to collect their fees on the back end after they negotiate a successful deal.
Obama credit card debt relief programs do not exist. With the passage of these new laws however there are legitimate options for consumers to get credit card debt relief without being ripped off. Debt settlement, credit counseling, and debt consolidation are all options worth considering if you are struggling with paying back credit card debt. All of these options can make financial sense for the right individual. It would be wise to speak with a debt relief professional that can go over all these debt relief options with you and help determine which option makes the most financial sense for your particular situation.
Check out the following link for free debt help from a certified debt relief specialist. They can provide you a non-biased evaluation of what debt relief option makes the most financial sense for your particular situation.