Credit Card Debt Relief - Why the Debt Settlement Process Is Now Legitimate

There is good news for all the people who are under huge financial debt that exceeds $10,000 and are having a hard time paying it off. Last year a new law was passed by the United States Government regarding legitimating debt settlement companies. According to this new law, the consumer does not have to make any advance payment to the debt settlement company i.e. no upfront payment is to be made. The debt settlement company is hired on contingency basis. It means that only if the company is successful in settling your claims with the creditors than only they get paid.

This was a necessary step which had to be taken by the US administration to stop illegal practices going on in these companies. Many people started debt settlement companies as way of making money instead of helping the people who are facing financial crisis. Many of illegitimate financial settlement companies use to take huge lump sum of money in advance claiming to settle debt from debtors and would provide no service to the debtors. Some of them even use negotiate a better deal for the creditor in lieu of money and would cheat their clients.

Due these illegal practice people lost their faith the financial settlement industry. This was a huge setback for those legitimate financial settlement firms; who had huge success in settling various debts for their clients. This new bill passed gives these fair practicing debt settlement firms a ray of hope. Contingency services of debt settlement firms gave this industry a major boost and retained the confidence of people in the financial settlement companies.

Now it is compulsory for all the debt relief companies to register themselves with the settlement companies association which governs the working of various debt settlement companies. All the debt settlement companies have to provide details about their work and clients so no one cheats their clients again. If you are thinking about settling your debts than you must select a company that is legitimate. A legitimate debt settling company would never cheat you and will always work keeping in mind what is best for you. They will negotiate the best amount possible and will try to end your financial miseries once and for all. You can check for local legitimate settlement firm on the internet over various social networks and blogs or you can find one in the yellow pages.

Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options. For a free consultation from a debt relief specialist in your area check out the following link:

Credit Card Debt Relief - Why the Debt Settlement Process Is Now Legitimate

By: adamcouch

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