subject: Credit Card Debt Consolidation - How New Laws Make Debt Settlement A Better Option [print this page] Credit Card Debt Consolidation - How New Laws Make Debt Settlement A Better Option
The New laws by the Federal Trade Commission about credit card debt have been passed in the year 2010. According to these laws, debt settlement companies are not allowed to charge any kind of upfront charges from their clients. So it can be said that one of the risks which people used to have about these debt settlement deals has been omitted with the help of these new laws. Now if a settlement firm fails to get you a reduction in your debt, then you are not liable to pay the company at all.
This act has made the industry of debt settlement more legitimate and risk free. Now it is being considered to be the best option for getting out of the pools of debt in a very short period of time. Now the Entire industry is depending upon the performance of the settlement firms and if any of them fail to get the desired results for their clients then they will not be paid anything.
A Few years back, debt settlement companies used to charge upfront fee from their clients. At the same time, there was no guarantee that whether they will be able to win the case for their client or not. But clients had to pay the upfront charges to the company. There were many fake companies working which used to charge the clients and afterwards, they were in a habit of telling them that they had failed to get the desired results. This situation used to leave people in a more unreliable and depressed conditions. Now after these laws, only legitimate and true companies are working in the debt industry.
The companies can not charge any kind of charges until or unless they do not win the case for you and get a reduction of almost 60 to 70% in the total amount to be paid. Rest of the amount is to be paid by the client in easy monthly installments or in a lump sum. It totally depends on the ease of the person who is supposed to pay back the rest of the amount of debt. We can say that this debt settlement process has become very much safe and reliable as compared to the past.
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. Check out the following link to speak with a debt relief specialist that can go over all your options for free.
