Christian Debt Recovery

Debt Relief Act Of 2010

January 17th, 2008 |

Author: Gavin

debt relief act of 2010

Credit Card Debt Relief Act 2010 – Don’t Pay A Penny Until Your Debt Is Settled

2010 marked the beginning of a whole new debt settlement era. New laws changed the whole industry and consumers took advantage of this fact and cleared their debt much easier and with help from professional companies.

Before we see what this new debt relief act did, let’s see what debt settlement is and how it works. Basically, it is a way to reduce your debt by talking to the creditor and convincing them that it would be better for both of you if he reduces your debt by half. This is so that the debtor can pay back his debt legally even if it is just a part of it and so that he wouldn’t be forced to file for bankruptcy. The creditor might accept a settlement deal if all the requirements are met but the negotiations are best left to the professionals. Debt settlement companies negotiate with the creditor and they can get you a better deal but they require a fee which only recently has to be paid once the debt is settled.

This used to be a big problem in the past when debt settlement companies asked for ridiculous amounts of money in advance and consumers that needed help had no choice but to pay in the dark. This usually resulted in a loss for the consumer because the debt settlement company would have obtained a bad deal or it would have disappeared with the money. To actually make a company fight for you, you had to give them more money and so the risk was bigger.

In 2010, all that changed as the new debt relief act banned these fees in advance and no debt settlement company can now take upfront fees. This made a lot of companies shut their doors because they were no longer able to make a profit, not to mention the fake companies that soon disappeared leaving only the legitimate strong companies. These are the companies you would to hire and they can help your settle your debt for much less without having to pay a penny until you see the results.

Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don’t settle your balance you don’t have to pay a dime.

Check out the following link for free help from a certified debt relief specialist:

About the Author

freedebtsettlementadvice.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://www.freedebtsettlementadvice.com

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