subject: Credit Debt Relief Programs - How The New Federal Debt Relief Act Affects You [print this page] Credit Debt Relief Programs - How The New Federal Debt Relief Act Affects You
The recent financial instability and massive credit generation of unsecured debts both brought very devastating outcomes for credit card debtors. On one hand, debtors are suffering from deterioration of their resources over which they were depending for the repayment of their financial obligations, whereas, on the other hand, they are also being threatened by their lenders for the debt repayment.
Besides these problems, the federal government is also sponsoring several debt relief programs in order to enable credit card debtors to eradicate their massive liabilities but still these debtors are suffering devastatingly due to unfair and unethical practices of debt settlement companies.
Lenders are also unnecessarily taking the advantage of this situation and are revising the interest rates due to late payments. They are also imposing heavy penalties which are making the principal amount of debt almost double. It is extremely difficult for debtors to repay it.
All these factors are contributing in increasing the problems of those debtors who are already suffering from massive debts. The federal government is realizing their difficulties and is bringing several new laws in order to safeguard borrowers from possible exploitation by stake holders.
According to these new laws, now lenders cannot revise interest rates over the principal amount if the lender is paying the installments on uninterrupted basis. Now these lenders cannot revise any schedule of charges without informing consumers around 45 days before its implementation.
The Federal government is also restricting the debt settlement companies for bringing transparency in their overall practices. Now these companies are bound by law for not charging any up-front fees from their clients until they not solve their debt related problems.
The government is also bringing amendments in the taxation laws. Now the federal government is providing several tax breaks and other incentives to borrowers so that their saving capability can be enhanced and they can use their savings for the repayment of their liabilities.
There is no doubt that federal laws are helping thousands of credit card borrowers to break the clutches of fierce unsecured debts and are bringing back stability in their lives.
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.
