Credit card debt relief is something that millions of Americans seek and thanks to new federal laws it is much easier to attain.
New federal laws were recently passed that provided significant protections for consumers in credit card debt.
Now when someone enters into a debt settlement program they won't have to pay a dime until their debts actually settle.
This indeed is a big improvement from the past and makes credit card debt relief a much less risky option for consumers and small businesses.
The new FTC laws officially went into effect on October 27th 2010.
This legislation put all the shady debt settlement services out of business and only the legitimate services will survive.
They are not allowed to collect upfront fees until they actually settle the debts so it is a far less risky option for consumers.
If their balances don't settle for an acceptable percentage the consumer doesn't have to pay a dime.
This legislation goes a long way to help Americans with credit card debt relief.
Settlement programs do work when done correctly by a legitimate company.
The typical settlement deal is negotiated for 50% of the balance however results vary case by case.
This option only makes financial sense for consumers and small businesses with at least $10k in unsecured debt that are experiencing a legitimate financial hardship.
It is the best alternative to filing bankruptcy.
Bankruptcy will hurt your credit score for at least 7 years while a debt settlement program typically affects your credit for 3 years or so.