Obama Credit Card Debt Relief – Fact Vs. Fiction Concerning Obama Debt Relief Programs
There has been much talk lately about Obama credit card debt relief programs some of which is true and some of which is not. First of all there is no debt relief program directly sponsored by Obama. However, there has been laws passed under his administration that favor credit card debt relief programs. It is important that consumers understand what exactly these debt relief programs are and when they might make financial sense.
On October 27th 2010, new credit card debt relief laws passed by the Federal Trade Commission went into place. These laws ban debt settlement companies from collecting upfront fees and provide much more protection on behalf of consumers. Now when a consumer or small business enters into a credit debt settlement program they will not have to pay a dime until their debts actually settle. Typically, the settlement services must completely eliminate at least 35% of the debt balance in order to collect a fee. Therefore, if a consumer has a credit card balance of $20,000, the settlement company must be able to eliminate at least $7,000 of that balance in order to collect a fee. They don’t settle, you don’t pay.
The majority of the shady credit card debt relief programs have been put out of business with the passage of this federal legislation. They simply cannot survive without collecting upfront fees. The legitimate companies however will ultimately benefit. They companies that have a proven track record of settling consumer debt balances will ultimately benefit. While most of the shady companies have been put out of business it is still wise to use a debt relief network such as FreeDebtReductionHelp.com. Networks such as these provide free debt help and are a good option to begin the debt relief process.
When you see ads online for Obama credit card debt relief program you should understand that Obama never came out with a sponsored debt settlement program. He did however approve of the new Federal Trade Commission laws that provide much more protection for consumers that enter into credit card debt relief programs. Before these laws were passed, debt settlement was a very risky option however now it has become a much better way to avoid bankruptcy and settle credit card debt for less.
Before speaking directly with a debt settlement company it would be wise to visit a free debt relief network. They will go over all your debt relief options for free. FreeDebtReductionHelp.com is one of the largest and most respected debt relief networks on the marketplace. Check out the following link to speak with a certified debt relief specialist for free debt help.
Or Call: 800-933-8332
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- United Debt Associates
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