subject: Credit Debt Settlement Relief Act - Making Debt Settlement Better For You [print this page] Credit Debt Settlement Relief Act - Making Debt Settlement Better For You
Credit card debt relief act is one of the major steps taken by the US Government in 2010. When people were facing tough economic conditions and recession had destroyed the peace of life, they started using credit cards. People used to live a luxurious life because they were enjoying handsome salaries but the life cycle has a phase of decline. When recession hit the economy people had lost their jobs. They had not enough money to meet their expenses and pay back the loans taken from credit card companies.
In such conditions normally people think for filing bankruptcy because they think that this is a quick way to get out of the problems of the loan burdens. But they never think about this that this problem would be faced by them in future when they will feel the need of loan and at that time they would have no option because they have been declared as bankrupt and their credit score would have been zero. Then the question is that how should one come of it? The answer to this is very simple because if you are not able to pay full amount of loan then you can pay half by using debt settlement method.
To make the payables less, people look around towards many debt settlement companies. These companies advertise their services and claim that they can settle the credit card debts up to 80% and people get attracted to their offers. Once they are trapped by these swindlers they have to pay high upfront charges for their services and in return they get nothing. The Government has passed a debt relief law for the benefit of the debt holders. According to the credit card debt settlement relief act no debt settlement company can charge high upfront fee to its customers. They have given right to the debt holders that they should not pay anything to these companies unless they make a proper settlement with a creditor.
After Credit Card Debt Settlement law people are expecting to reduce their loan payments and because of this it is expected that the 2011 would be financially stable as compared to the past years. So if you have a debt of $10000 or more then you do not have to pay full debt amount.
If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.
