subject: New Debt Settlement Rules - How The FTC Is Saving Consumers Money On Debt Relief [print this page] The Federal Trade Commission is making sure that Americans get to settle their debt in a legitimate way and they benefit from the new debt settlement rules. This is a good way to clear your debt and get back to the life you used to have.
Debt relief can be quite expensive because you need to hire a company if you want to get the best results but the government has made sure that consumers afford to do this and has issued new laws to help them in this matter. Some laws make debt settlement more consumer friendly while other laws make it more legitimate.
A good way to save money on debt relief is by looking into free companies. These are founded by the government and offer services to consumers that are in debt and cannot afford to hire a debt settlement company without help. Such companies can be found on the internet and are a great help for consumers in debt.
The government granted special privileges for consumers that choose debt relief rather than bankruptcy. One of these privileges comes in the form of tax breaks. When you negotiate with the creditors and you get a big reduction, you might expect to pay taxes for that amount. The IRS grants tax relief to any debt reduced with the help of debt settlement to encourage more consumers to use this option.
Not only debtors benefit from debt settlement rules but also creditors. Stimulus money is given to credit card companies that agree to settle the debt of their clients. This covers a part of the amount they lose and they afford to settle for less and help more consumers without being forced to shut their doors.
Another debt settlement rule is that companies cannot take any upfront fees and must first complete the negations and settle the debt. Only then can they ask for the fees and this way consumers know what they are paying for and are no longer in the dark when it comes to their own debt. This makes for fewer scams and you no longer have to worry about fake companies that just take your money and disappear.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.
New Debt Settlement Rules - How The FTC Is Saving Consumers Money On Debt Relief
