subject: Debt Settlement Act 2010 - Giving Consumers More Protection for Debt Relief Programs [print this page] Debt Settlement Act 2010 - Giving Consumers More Protection for Debt Relief Programs
As the recent recession struck, many people started to suffer from many bad debts. In all this economic chaos, consumers are suffering the most. They are not able to repay their loans. Now, the government has introduced new laws under the act of 2010. These new laws are quite beneficial for the consumers as they can eliminate their loans very easily by opting for any of the new relief option proposed by the government.
The new FTC laws have introduced the following relief options. The first one is debt settlement, then debt negotiation and lastly, debt consolidation. Firstly, the government prohibited the settlement industries from charging any kind of upfront fees from the consumers until their debt issues are not settled.
According to the debt settlement option, the one who adopts this option can get more than half of the debts cleared that is, you can get up to 60 to 70 percent reduction in your debts and you can repay the left amount in any other payment as you desire.
Then according to the debt negotiation option, you should hire an experienced settlement firm which would negotiate with the system on your behalf and make them believe that your financial condition does not allows you to pay your debts. If the authorities consider your request then you can get full clearance in your debts without paying any kind of amount.
The debt consolidation option states that you should apply for a loan from a bank. But, you would only get this loan if your previous financial record would be clear. Once you have got this loan then you would pay for your debts from this loan. You can return this loan afterwards in installments or by any other payment method which you and the bank would agree upon.
These were the new laws which were introduced by the FTC for the betterment of the consumers. Today, most of the debtors have become free from the massive burden of these liabilities. Debt settlement has been proved as the best alternative to filing bankruptcy. By opting for these options, you can make your financial career secure and can maintained your credit score.
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.
