Federal Credit Card Debt Relief – How New FTC Laws Help You Eliminate Credit Debt

The Federal Trade Commission recently passed laws which are going to make it much easier for consumers to eliminate credit card debt. These federal credit card debt relief laws ban debt settlement companies from collecting upfront fees. Now, consumers looking to settle their credit card debt for less won’t have to pay their debt settlement company until they actually receive an official settlement. What used to be a very risky decision for consumers is now a legitimate way to eliminate credit card debt.

Debt settlement is a debt relief option that lets consumers make a deal with their creditors to pay back less than they actually owe. This has become more popular over the past couple years in large part due to the “bailout” attitude set in place by the federal government. If these large financial institutions are being bailed out then many consumers believe they can too. While debt settlement is not really a bailout and definitely not sponsored by the government, it is a legitimate way for consumers going through a financial hardship to eliminate some of their unsecured debts. In 2009 the debt settlement industry was responsible for settling over $1 billion in unsecured debts saving debt ridden consumers nearly $600 million.

So why would credit card companies and other creditors of unsecured debt agree to debt settlement deals? The answer is simple. They don’t want you to declare bankruptcy. They know that if a consumer were to declare bankruptcy they would likely receive none of their money back. With more consumers on the edge of bankruptcy than ever before, creditors are having no choice but to agree to debt settlement deals.

These new federal credit card debt relief laws are expected to put all the shady debt relief companies out of business. Only the legitimate debt settlement companies that have actually been settling consumer’s debts will survive. They will have enough confidence to collect their fee on the back end when the debts are actually settled.

Sites like FreeDebtReductionHelp.com are the best sources to find legitimate debt relief services that are certified and established in the debt relief industry. They are one of the biggest Free Debt Relief Networks on the marketplace and provide free consultations to consumers in need of debt relief.

Debt settlement is not the only debt relief option. There’s also credit counseling, debt consolidation or even bankruptcy. Check out the following link to speak with a debt relief specialist who will go over all the options for free:

www.freedebtreductionhelp.com

Or Call: 877-853-6466

Contact Information

Michael Smith

Coo

United Debt Associates

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