National Credit Card Debt Relief - How Americans Can Take Advantage Of New Debt Relief Laws

Online, January 19, 2011 (Newswire.com) - Just recently, the federal trade commission of the United States instituted new laws that make it much easier for consumers and small businesses to settle their unsecured credit card debt. A process known as debt settlement, which was once a very risky decision, is now much more legitimate. It is now illegal for debt settlement services to collect their fees upfront. Therefore, if they don't deliver and significantly reduce your debt, you don't pay a dime.

What used to be a very risky option, in joining a debt settlement program, is now much less risky. Consumers won't have to worry about getting ripped off cause they won't be paying their fees until the debts actually settle. If they don't settle the debt then they don't get paid. There are some companies that try to get around this by having lawyers collect fees. Theses attorney backed debt settlement programs should be avoided at all cost. Make sure to only do business with no advance fee debt settlement programs or the "NAF model".

Debt settlement is only intended for those that are experiencing a financial hardship and want to avoid filing bankruptcy. If credit card companies believe you are a legitimate candidate for bankruptcy they will be more that willing to settle your debts for less. They know that if you were to file and be accepted for bankruptcy they would likely receive little to none of their money back. Knowing this most creditors will accept 50% of your balance rather than taking a complete loss with bankruptcy.

The new national credit card debt relief laws go a long way in making debt settlement a legitimate option for consumers and small businesses that want to avoid bankruptcy. Do to the bad economy and overwhelming amount of people deeply in debt, creditors are having no choice but to make debt settlement deals. Now however, thanks to these new laws, consumers won't pay to pay debt relief companies until they see real results.

There are also other credit card debt relief options such as credit counseling or debt consolidation. If you are struggling with credit card debt it would be wise to talk with a debt relief specialist . They can go over all your options for free and help you determine what, if any, debt relief option makes financial sense for you.

Check out the following link for free debt relief help:

[url:http://www.freedebtsettlementadvice.com] Free Debt Relief Help [/url