Credit Card Debt Relief Act – FTC Makes Debt Settlement Process Legal
Laws have been passed by the FTC or Federal Trade Commission to regulate the credit card debt relief industry particularly aiming for the profitable debt settlement companies. Many of the companies have promised their customers to reduce the credit card debt to as much as possible. The problem is that there is no guarantee for the customers and, as such, many of them had to pay the upfront fees to the debt settlement companies. The Credit Card Debt relief act brought a change to all this. The debt settlement companies will have to keep their promises or else they will not get paid for their services. You may also choose credit card consolidation
to pay off your outstanding debts.
The debt settlement industry began its growth severely after the new bankruptcy laws had been passed in the year 2005 which made it more difficult to qualify for bankruptcy. There were hundreds of debt settlement companies that started business and many of them are illegal that charge fees from you without offering proper service.
With the help of this new legislation, you may keep all the debt relief services aside. The services that can settle the debts of the customers legally should exist. The debt settlement process works when done with an authentic company and in the right way. The reliable debt settlement companies will confidently collect their fees once they settle your debts successfully.
The credit card companies and the creditors agree to accept debt settlement deals willingly. They know that if any customer declares for bankruptcy, they will not be able to get back any of their money. Thus, by taking into consideration the number of Americans on the threshold of bankruptcy, the creditors do not find any other alternative but to accept the debt settlement deals since they will be able to get at least 50% of their own money.
Other credit card debt relief solutions are credit card consolidation, credit counseling and bankruptcy. But debt settlement is the best option to pay off your outstanding debts and has been made particularly for the customers who are facing financial hardships and have at least a minimum of $10k unsecured debt.
Bankruptcy should always be the last resort for a debtor when he finds no other way out to eradicate his debt problems. It would be a wise decision to have a talk with a debt expert who will assess your income and expenses and then give you all the possible options to do away with your debt problems.
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