subject: New Credit Debt Settlement Laws - Don't Pay A Dime Until Your Debt Settles [print this page] New Credit Debt Settlement Laws - Don't Pay A Dime Until Your Debt Settles
Credit card plays an important role in daily life. In fact it is true to say that majority of United States citizens are depending upon these cards in order to keep up to their expenses and other primary needs of life easily. Using credit card is easy but paying its charges and amounts back in time is not at all an easy thing. The high rate of interest and other hidden charges make the payable amount quite hard to manage. Though process of debt settlement is present in market but people are hesitating a lot to adopt this method. Debt settlement brings fast reduction in the amount of debt but still people are avoiding it. Getting trapped by fake and scam companies is the main reason why people are not encouraging settlement deals. The fake and fraudulent companies ruined the whole reputation of settlement business. This insecurity of people regarding settlement option is pulling them towards bankruptcy. Although it is a legal way for reducing the debts but it is not considered as the viable option, the growing ratio of bankruptcy is making the financial conditions of the economy more worst. In order to stop people from filing bankruptcy, the federal trade commission has made some changes in the laws of settlement.
These changes are basically done to protect and safeguard people from scam and illegal companies. As per the new rules and regulations of settlement, the company is not liable for taking the service fees in advance, company can ask for the fees only after delivering the services successfully. The person has the right of not paying a single penny unless and until the negotiators do not bring the decline in the amount of their debt. These laws have washed out all the illegal practices from market and now only the legitimate and genuine companies are lending their services.
Always keep this thing in mind that if a company is asking for fees in advance then it is not a reliable one and avoid making any business deal with it. The legal companies are those that are obeying the new rules and regulations.
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.
