subject: New Debt Settlement Laws - A Victory For Consumers With Too Much Credit Card Debt [print this page] New Debt Settlement Laws - A Victory For Consumers With Too Much Credit Card Debt
The new debt relief act has made settling debts the most optimum minimal feasible solution. The credit card debts are unsecured debts and they have very high interest rates. Unless the amount owed to the creditor is not paid in full it continuously increases. Ultimately it reaches a level where the debtor is unable to pay back the entire amount. Thus the debtor gets stuck in a continuous loop of debt and eventually the debtor becomes convinced that the bankruptcy is the only way out. The debtors often forget that despite these hard times, there are ways with which they can gracefully settle their debts by opting for a Debt Relief program.
There are many programs that debtors can choose for settling their debts; each program is designed to deal with a certain situation. Those debtors whom are struggling to pay off their credit card debts because of the high interest rate and their debt is less than $5K. They are recommended the Debt Consolidation program; according to this program the debtor borrows money from the creditor on very low interest rate and pay off debts with the higher interest rate. Thus the debtor gets rid of the higher interest rate and the creditor is rest assured that the debtor won't file for bankruptcy. In case the debt amount is more than $10K, the debtor is recommended to go for the Debt Negotiation program; according to this program the debtor is granted a wavier of 40-70% on the total amount owed to the creditor. The wavier amount is decided after taking into consideration the financial state and credit history of the debtor.
Therefore in order to better present the arguments to the creditors to convince them to grant the maximum wavier, it is very important that the debtor renders the services of a Debt Relief firm in this regard. These firms have trained professionals who negotiate on the debtor behalf with the creditor; their core aim is to get maximum relaxation for their client. The Debt Relief firms also provide free counseling services to their clients, so that they learn how to control their expenses and avoid getting into too much debt.
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:
