Deliver Your News to the World

Credit Card Debt Relief 2010 - How New Laws Make Debt Settlement Better Than Filing Bankruptcy


The FTC recently passed new laws regulating the debt settlement industry banning them from collecting upfront fees. Now consumers that enter into a debt settlement program will not have to pay a fee until the debt relief company actually settles the debt. Therefore the risk of entering such a program has been drastically shifted from the consumer to the debt settlement company.

The process of debt settlement does work when done correctly and by the right company. Credit card companies understand that if a consumer were to declare bankruptcy they would probably not receive any of their money back. Knowing this, and the fact that there are a lot of people on the verge of bankruptcy, they are more than willing to make a debt settlement deal. They’d rather have 50% of their money back than none at all.

Credit card debt is something that almost every American can relate to. For the past two decades, the lending standards of this country have been downright irresponsible and many consumers are now left feeling the hangover of massive credit card debt balances. With the recession and all time high unemployment, many Americans are on the verge of filing bankruptcy. Bankruptcy however should always be the last option for credit card debt relief.

Bankruptcy will affect a consumer’s credit score for at least 7 years. This means for at least 7 years consumers who file bankruptcy will struggle to get financing or any type of credit. Also with the new bankruptcy laws that were passed in 2005, Chapter 7 bankruptcy is much more difficult to qualify for. Chapter 7bankruptcy is the “clean slate” bankruptcy where the majority of the debts are forgiven. This used to be a good option for consumers experiencing a financial hardship and still is but it’s very difficult to qualify for now.

Consumers who attempt to file bankruptcy will most likely qualify for Chapter 13 bankruptcy. This basically reorganizes the debt and comes up with a payment plan to pay a certain percentage off over time. Chapter 13 bankruptcy is similar to the debt settlement process except for one thing. Bankruptcy will hurt credit scores much longer than a debt settlement process. Debt settlement will still have a negative impact on credit scores but it is easier to repair than bankruptcy is.

The easiest way to locate legitimate debt settlement companies is to use a free debt relief network. These networks will ensure that the debt settlement company you are provided is legitimate and is a respected member of all the regulatory commissions such as The Association Of Settlement Companies and the BBB. Most free debt relief networks will provide a free debt consultation to help the consumer determine what debt relief option is most appropriate. A good debt relief network is

There is no magic bullet to get out of debt however with these new laws debt settlement can a legitimate option for consumers who are experiencing financial hardship and have at least $10k in unsecured debts.

To locate legitimate debt settlement companies through a free debt relief network check out the following link:


 credit card debt
 debt settlement
 debt relief
 unsecured debt

This news content may be integrated into any legitimate news gathering and publishing effort. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.