subject: Credit Debt Relief Act - Avoid Bankruptcy And Legally Settle Your Credit Debt [print this page] Credit Debt Relief Act - Avoid Bankruptcy And Legally Settle Your Credit Debt
The creditors and federal government are making every possible effort to attract debtors to settle their debts instead of choosing filing for bankruptcy. As a continuation of that process the new Debt Relief act 2010 is promulgated. According to this law the debtors are no longer supposed to pay the Debt Relief firms an upfront fee and they only should pay when the settlement is made plus they also should be satisfied with their performance. The economic melt made many people lives hell and especially those who had credit card bills to pay. The credit card debts are unsecured debts and they have very high interest rate. Until the amount owed to the creditors is not completely paid back it keeps on increasing. Eventually it reaches a level where it becomes impossible for the debtor to pay and they start considering filing for bankruptcy. As this seems to be the easier and quicker way for them to deal with their debts but bankruptcy have some very serious repercussions.
The Debt Relief firms offer an array of programs for the debtor to choose from. Each program is designed to deal with a specific situation. Those debtors who struggle to pay off their debts because of the high interest rate and their debt amount exceeds than $10K. They are suggested the Debt Negotiation program; according to this program the debtor can get a wavier of 40-70% on the entire amount payable. The amount of wavier is decided in context of the financial state and credit history of the debtor. It becomes really important here that the situation is explained proficiently to the creditors to convince them to grant the maximum wavier.
Here the importance of the Debt Relief firms arises because they can better explain the facts to them and convince them to grant the maximum relaxation. These firms have trained professionals who negotiate on the debtors' behalf with the creditors. The also offer counseling services to their clients and teach them how to plan their budget to control their expenses. The debtors must capitalize on this debtor friendly environment and settle their immediately.
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:
