subject: Credit Card Debt Relief - How New Laws Help You Eliminate Credit Card Debt [print this page] Since president Obama has taken over the presidential office; he has been making moves to aid the consumers and those people who are facing difficulties due to huge amount of liability burden. To lower the burden Obama credit card debt relief programs have been formulated which has aided not only the public; it has even aided the creditors and the economy of America. Obama credit card debt relief programs were formed to discourage people from filing insolvency as insolvency has played a major role in affecting the American economy negatively.
One of the most popular and affective Obama credit card debt relief program is debt settlement. With the aid of debt settlement; any debtor who owes more than $10,000 to their lenders can gain relief by negotiating with their creditors. The debtors seeks discount on the amount of money he has borrowed and after getting the discount he tries to reduce the interest rate he has to pay on the remaining loan amount. He can even negotiate for extra repayment tenure. With all these aids he can solve his liability issues. If the debtor does not have the appropriate negotiation skills then he should consider hiring a settlement organization. This organization will use its skills and experience to get the best deal for their clients.
The debtor should make sure that he is selecting a legitimate organization because if he fails to do so; he might end up facing issues such as being cheated by illegal settlement agencies. These agencies charge upfront fees and then they vanish in thin air without providing any form of aid to their clients. This case was reported by many debtors and due to this scenario; many consumers even stopped thinking of using this method and returned to the old method of filing insolvency. The economy once again faced the threat of experiencing issues credited by insolvency. To control the mess; the government of America changed the settlement laws.
According to the changed laws; a settlement company is banned from charging any form of upfront fees from their clients. If they do so they will be breaking US laws and will be charged. Due to this change; handful of fraud settlement companies stopped operating and debtors were now able to easily select a legitimate settlement firm. More and more legitimate settlement firms started showing up and due to this the competition between legitimate settlements firms increased which was helpful for the clients.
Debt settlement is a legitimate alternative to bankruptcy and can make financial sense for consumers with over $10k in unsecured debt.
Credit Card Debt Relief - How New Laws Help You Eliminate Credit Card Debt
