subject: New Debt Settlement Programs - No More Upfront Fees Means a Better Deal for You [print this page] New Debt Settlement Programs - No More Upfront Fees Means a Better Deal for You
When you look for some best debt negotiation service you come up many options but each option has its own benefits and drawbacks. Some options suit your financial conditions and some do not. Debt settlement programs were very popular among the debt holders but when the settlement companies began to charge high upfront fees and debt reduction had no guarantee, people faced many problems. Considering these problems, the US Government introduced New Debt Settlement Programs.
Settlement industry had many scammers who used to betray people by offering them various deals. But innocent customers who had been trapped by these swindlers were charged with high upfront fee but the settlement process took many months and in the end the clients were told about no results. The US Government realized that people have lost their confidence in these settlement companies and now they are going for bankruptcy. In order to save debtors and creditors from the financial crisis, the US Government passed a Debt Relief Act. According to this new debt relief program if you have debt of $10000 or more then you can reduce it up to 60%.
In this new debt settlement program there is a legal protection given to the debt holders. All the debt settlement companies are under the full watch of the Government because according to the new policies, debt settlement companies are not liable to charge any amount from the debtors until they become successful in bargaining with creditor to make the payments less. Secondly, the debt relief companies cannot charge high upfront fee after delivering desirable services to the clients. They can only charge 15% of the amount which they have reduced.
So it is not a bad deal for the debt holders. Now they can trust the debt negotiation companies because they are working under the laws of Government. Neither there will be a threat of being betrayed nor high upfront fee for the services. Debt relief is much better than filing bankruptcy because in bankruptcy both borrowers and lenders have to face problems where in the debt settlement approach, debts are paid and you can have the facility of loan at any time in future.
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.
