subject: Credit Card Settlement - How New FTC Laws Help You Avoid Paying Bad Credit Debt [print this page] Credit Card Settlement - How New FTC Laws Help You Avoid Paying Bad Credit Debt
The new FTC laws are helping the consumers to get out of their unsecured loans as fast as they can. However, the minimum time that is required to get out of bad credit debt is 1-3 years (provided that the consumers opt for settlement deals). As a matter of fact the new FTC laws have actually promoted the method of debt settlement and has made settlement industry even more legit.
According to these new laws the creditors are now allowed to use stimulus cash and are also allowed to enjoy the reduction in taxes. However, these benefits are given to the creditors only when they entertain the settlement offers made by the consumers and actually settle the debts with the consumers.
Stimulus cash covers the cost which are involved in these profit making organizations. The creditors face loss of principal money with settlement. The principal money is the source that the creditors actually utilize to cover their costs. Stimulus cash covers this loss and allows the creditors to use the money to cover those costs.
The tax reduction ensures that the loss of the creditors in form of loss of income from interest earning is minimized. These two government aids promote debt settlement and the consumers can now easily get out of their bad credit debt.
Also the restriction on the collection of up front service from the consumers by the settlement firms ensure that the consumers get legit relief services and thereby get out of their credit dues without hassles using professional help.
Debt settlement can make financial sense for consumers and small businesses that are experiencing a financial hardship and have at least $10k in unsecured debt. It is not the only option however.
