Credit Card Debt Continues To Rise – Why Many Consumers Are Turning To Debt Settlement
With a glimmer of hope that the economy might be turning around, American consumers are back to their old habits of racking up credit card debt. The “all pay for it later” attitude has finally caught up to millions of Americans who have maxed out their credit cards and are struggling to pay them back. Debt settlement cases are at an all time high and credit card companies are having no choice but to make debt settlement deals.
Credit card companies and other creditors of unsecured debt are very concerned about the rising rate of delinquent accounts. The fact is that many consumers simply cannot afford to pay back their credit card debt. To prevent them from filing bankruptcy, creditors are having no option but to negotiate and take a lesser payment. They know that if the debtor were to be accepted for bankruptcy they would likely receive little to none of their money back. Therefore a debt settlement often makes financial sense for creditors. 50% of their money back is better than nothing.
New federal laws actually make the debt settlement process much better for consumers and small businesses seeking debt relief. On October 27th 2010, the federal trade commission passed new laws which ban debt settlement companies from collecting upfront fees. Now, when someone enters a debt settlement program they must get their debt settled for a certain percentage (typically 35%) or they won’t have to pay a single penny.
Before choosing any debt relief option its important to talk with a debt relief network. They will be able to provide a free and unbiased analysis of what debt relief option makes sense for a particular situation.
FreeDebtReductionHelp.com is one of the largest and most respected debt relief networks on the marketplace today. They provide free help and also have a detailed history of all the debt relief companies within the industry. This will help avoid getting taken advantage of by illegitimate debt relief companies.
To get free debt relief advice, visit:
- Contact Information
- Michael Smith
- United Debt Associates
- Contact via E-mail
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