Credit Card Debt Settlement – How New Laws Make Settling Credit Card Debt Less Risky For Consumers

(I-Newswire) September 7, 2010 - Credit card debt is something that almost every American can relate to. For the past two decades, the lending standards of this country have been irresponsible and many consumers are now left feeling the hangover of massive credit card debt balances. With the recession and all time high unemployment many Americans are on the verge of filing bankruptcy. Bankruptcy however should always be the last option for credit card debt relief. New laws passed by the FTC in July 2010 have made one debt relief option particularly attractive, credit card debt settlement.

Credit Card Debt Settlement is the process of coming to an agreement with creditors and settling the balance at a reduced percentage. Before the new FTC laws were passed, credit card debt settlement used to be a very risky decision. That’s because debt negotiation services used to collect upfront non-refundable fees with no guarantee of a successful settlement. These new laws ban this practice of collecting fees upfront. Now credit card debt settlement is far less risky for the consumer.

If the debt negotiation company doesn’t successfully negotiate a debt settlement deal for an acceptable percentage, the consumer doesn’t have to pay a dime. These new laws make the process of settling debt much more legitimate and consumer friendly.

The risk of credit card debt settlement has been taken off the back of the consumer and placed upon the debt negotiation companies. They don’t get paid unless they successfully settle the debts. This will undoubtedly make the process more effective as well. The negotiators will be much more motivated to negotiate a successful settlement as their fee is now on the line.

In order to qualify for a debt settlement consumers must have at least $10k in unsecured debt and be experiencing a legitimate financial hardship. This option is considered an alternative to filing bankruptcy. It will still have a negative impact on your credit score but not nearly as bad as filing bankruptcy. It is very important however that consumers know how to locate legitimate debt relief services.

The easiest way to locate legitimate debt settlement companies is to use a free debt relief network Free Debt Relief Network . These networks will ensure that the debt settlement company you are provided is legitimate and is a respected member of all the regulatory commissions such as The Association Of Settlement Companies and the BBB. Most free debt relief networks will provide a free debt consultation to help the consumer determine what debt relief option is most appropriate. There is no magic bullet to get out of debt however debt settlement can a good option for consumers who are experiencing financial hardship and have at least $10k in unsecured debts.

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

Free Debt Relief Advice

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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

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FreeDebtSettlementAdvice.com
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Phone : 877-853-6466