subject: Credit Card Debt Relief Act 2010 - How Debt Settlement Just Became Better [print this page] Credit Card Debt Relief Act 2010 - How Debt Settlement Just Became Better
Consumers now have a great opportunity to settle their credit card debt. With the economy the way it is there are many people who no longer have jobs. Those that do have jobs have taken pay cuts and had there hours reduced. They found it impossible to pay their credit cards and life became rough as many ruined their credit scores. The lack of income coupled with the lack of income made it impossible for people to get bank loans. They thought all was lost. The number of people filing bankruptcy skyrocketed and credit card companies incurred a huge loss. With the help of the credit card debt relief act of 2010 the government has helped both consumers and the companies.
The consumer is left with three choices. The first choice is to file bankruptcy. For most clients this is not the best answer. First the consumer looses everything that is secured debt in most cases. This includes their cars and their homes. The second choice is credit counseling. Credit counseling is for those people who are still paying their minimum monthly payments. Under this counseling a trained individual will work with the credit card companies so that you are making one monthly payment. Usually the credit card companies will lower the interest rate or forgive part of the debt. The third way is debt negotiation. To qualify for debt negotiation the consumer must no longer be paying on their credit card bills. Here the consumer hires a trained person to help them establish a repayment plan that will have you out of debt in two to four years. Often times the debt is reduced by 50%. The trained person will also help you establish a budget that you can live within.
These plans make a lot of sense for many consumers. For the consumer they are settling their debt at 50 cents on the dollar. While they are going to hurt their credit rating some it will not hurt it nearly as bad as if they filed bankruptcy which stays on the credit rating for 10 years. The consumer also gets to keep all their property.
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:
