New Debt Settlement Laws 2010 - How New FTC Laws Help Consumers Settle Unsecured Debt
Getting out of debt via a debt settlement process used to be a very risky decision for consumers seeking debt relief. The majority of debt relief companies would like large upfront fees with no guarantee of the debts actually settling. This is not possible anymore. New FTC laws passed late this summer prohibit debt settlement companies from collecting upfront fees. If the consumer’s debt does not settle, they shouldn’t have to pay a dime. With the passage of these new laws, the debt settlement process has become a much more legitimate option for consumers and small businesses.
In the past, debt settlement companies would promise to eliminate a significant percentage of the consumers debt and many times would not follow through yet still collect their fee. This is not possible anymore thanks to the new FTC laws.
Only consumers experiencing a legitimate financial hardship and whom have over $10,000 in unsecured debt should consider using the debt settlement process. If consumers or small businesses are struggling to meet their minimum payments on unsecured debt, then the debt settlement process can be a very effective way to eliminate a significant percentage of that debt and avoid filing bankruptcy. Bankruptcy should always be the absolute last option for debt relief.
Debt settlements have seen a significant rise in filings since the economic recession hit. In 2009 alone there was over $1 billion in unsecured debt settled via the debt settlement negotiation process. This resulted in over $600 million being eliminated off the books of debt ridden consumers and approximately $400 million being collected to creditors who would never have received that money if the consumers filed bankruptcy.
The process of debt settlement does work when done correctly and by the right company. With the passage of the new FTC debt settlement laws, only the most legitimate debt settlement companies backed by attorneys will survive. It would be wise to use a site like FreeDebtReductionHelp.com to locate some of the best legally back debt relief companies. Only companies offering legal representation are worth using. The other ones can cause more harm than good.
There are also other debt relief options such and credit counseling and debt consolidation. Check out the following link to speak with a debt relief specialist who will go over all your options for free.
- Contact Information
- United Debt Associates
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