subject: New Debt Relief Laws - A Way To Legally Get Out Of Paying Back Credit Card Debt [print this page] New Debt Relief Laws - A Way To Legally Get Out Of Paying Back Credit Card Debt
Credit card debts have always been difficult to pay back but since the economic melt down, they have become a real pain. The credit card debts are unsecured debts and they have high interest rates as compared to secured debts. The amount payable increase until the total amount owed to the creditors is not paid back completely. Ultimately it reaches to a level where it becomes very difficult for the debtor to pay back. The debtor gets stuck in an infinite loop of debt because the interest rates are so high even if partial payment is made; the debt amount again swells back to where it was. Thus the debtors often get frustrated and they opt for bankruptcy. They completely over look the fact that bankruptcy has sever financial and social repercussions. There are many ways with which the debtors can get out of this mess gracefully.
There are many Debt Relief programs available for the debtors to settle their debts. These programs ensure both financial and social security. Those debtors who are unable to pay the entire debt amount and still want to settle their debts. They are often suggested to opt for the Debt Settlement program. According to this program the debtor can get to settle the entire debt without having to pay for the total amount of debt legally. The creditors can cancel up to 60% of the debt amount from payment. The creditor decided the amount of wavier in the context of the financial state of the debtor.
That is why it is always recommended to hire a Debt Relief company for settling the debts. These companies are back by experience and respected attorneys. They negotiate on the debtors' behalf with the creditors. They explain their clients' situation to the creditors and try to convince them to grant the maximum waiver. The new Debt Relief laws restrict them from charging any up front fee. Many debtors won't opt for settlement because of their inability to pay for that fee. Now the debtors are only supposed to pay once the settlement is made and they are satisfied with the results.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
Check out the following link for free help from a certified debt relief specialist:
