Credit Card Debt Settlement Act 2010 – Why Credit Card Debt Is Now Easier To Negotiate And Settle For Less

(I-Newswire) August 31, 2010 - The Credit Card Debt Settlement Act 2010 was recently passed by the Federal Trade Commission of the United States. These new laws ban debt settlement companies from collecting upfront fees from consumers looking to settle credit card debt . Now consumers will not have to pay a dime until their debts are actually settled. This is indeed a victory for both consumers and the Obama administration.

There are more Americans deeply in credit card debt than at any other point in our history. This is mainly due to the irresponsible and unregulated lending practices over the last decade. For consumers with $10k or more in credit card debt it will take nearly an entire lifetime to pay back the debt in full by just making the minimum payments. Credit card companies are jacking up their interest rates making even the monthly minimums difficult to pay for many. If consumers are struggling to pay their bills or just don’t want to spend their whole lives trapped in debt, they often opt for debt settlement instead of filing bankruptcy. Credit card debt settlement will typically affect a consumers’ credit score for 2-4 years while bankruptcy will affect a credit score for at least 7 years.

So why would credit card companies agree to these debt settlement deals. The answer is simple. Creditors of unsecured debt are aware that if the consumer were to declare bankruptcy they would likely receive little of their money back. Therefore, if a creditor believes the debtor is a real candidate for bankruptcy it is in their best interest to make a deal and get back some of their money.

So how do consumers convince creditors that they are a legitimate candidate for bankruptcy? They go delinquent and stop making regular payments. This is typically the hardest decision that consumers make but it is necessary in order to receive a favorable debt settlement offer.

Credit card debt settlement is a legitimate alternative to bankruptcy but not all consumers will be eligible for it. In order to qualify the consumer must be at least $10k in unsecured debt and also be able to prove a legitimate financial hardship such as a loss of job or medical issue. There are free debt relief networks that help consumers locate TASC certified debt settlement companies as well as provide a free consultation to go over all available debt relief options. If a consumer is going through a financial hardship and understands the risks associated with debt settlement, then it can be a viable way to eliminate unsecured debt and clearly is a better alternative to filing bankruptcy.

To locate legitimate debt settlement companies through a free debt relief network check out the following link:

Free Debt Relief Advice

Additional Attach Files

Credit Card 2.jpg

About FreeDebtSettlementAdvice.com:
FreeDebtSettlementAdvice.com is a consumer based service that was established to provide consumers a way to locate a legitimate debt settlement company that has a proven track record in negotiating and settling debt.

For Free Debt Help Call : 877-853-6466

http://www.freedebtsettlementadvice.com

Company Contact Information
FreeDebtSettlementAdvice.com
Allan Sanders
425 N Main St
43215
Phone : 877-853-6466