The Best Debt Relief Options For 2011 - Why Debt Settlement Is Now A Much Better Choice Part 2

The Best Debt Relief Options For 2011 - Why Debt Settlement Is Now A Much Better Choice Part 2

In the previous part we are ended with conclusion that there is a solution of each problem and so debt settlement is one of the best debt relief options for 2011. What is debt settlement and why it is called efficient and affordable? Debt settlement is a process of reducing the credit card debts. If you have credit card liabilities more than $10000 then you can make it half by the legal settlement with the credit card company. Now how it is affordable, this will be discussed in the rest of the portion of this article.

In 2010 and before it, many people went for bankruptcy because they were not in a position to pay back their loans due to losing their jobs and other sources of income. On the same side, the credit card companies were also suffering from the bankruptcy because after the declaration of their customers' bankruptcy these companies also never had any single penny. So the US Government realized the problem on both ends and introduced a Debt Relief Act 2010 according to which debtors got reduction in their payables and the credit card companies have started getting their money back.

But due to lack of check and balance many debt relief companies took advantage and started generating revenues. They used to trap customers and claim to reduce the amount and charge high fee for it but after taking time of 2 to 3 months they just used to make excuses that they tried but could not be able to bargain with the creditor. By seeing this, the debt holders started hesitating in opting for this option because of the fear of being betrayed and thus they started losing their confidence and again went for bankruptcy.

Then again the debt relief act 2010 was revised and it came up with good news for the poor debtors. According to the new law these debt settlement companies are not liable to charge any amount of fee to their customers until they win the cases of debt settlement. Secondly when they deliver their services to their clients, they can charge only 15% of the amount waived off through the debt relief program. So we can say that the debt settlement is affordable method and it can be termed as one of the best debt relief options for 2011.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.

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