| Wednesday, October 6, 2010 |

Credit Card Debt Bailouts - How New FTC Laws Encourage Consumers To Choose Debt Settlement

Mounting credit card debt can sink any person very quickly. One missed payment and the debt begins to grow quickly. It will become out of control very fast. The credit card debt bailouts that the new FTC laws create, is actually there to help consumers. The new laws encourage consumers to choose debt settlement over bankruptcy. Bankruptcy hurts the consumer and creditors.

 The consumer has the bankruptcy on their credit for ten years. This can make buying a home, refinancing a home, buying a car or making large purchases impossible. It can also affect insurance rates too. Car insurance companies and other types of insurance providers many times run a credit check before writing the rate that the consumer will receive. A bankruptcy can mean a higher rate, because now the consumer is considered a risk. Bankruptcy also seeps into job applications as well. Companies that deal in money many times will not hire somebody that has a bankruptcy either. Bankruptcy can affect a person for many years to come.

While it hurts the banks also because they receive nothing when there is a credit card bankruptcy filled. There is no recourse for them and the bankruptcy laws protect the consumer for ten years. Which means they are protected past the statue of limitations that states that a debt has to be collected in a certain amount of time. After that period passes, the debt can no longer be collected on.
The credit card debt bailouts means a consumer can go to a debt settlement or credit counselor for help with settling their debt with the creditors. The debt settlement agency works with the creditors to lower and reduce the amount of debt that the consumer owes.

They negotiate with the creditors to reduce the amount the debt by at least 50%. They work to have the fees, late charges, over limit fees and interest removed from the debt, so that the original amount is left., After that they continue to work to get the debt reduced further so that it is an amount that the consumer can actually pay back on a repayment plan.

The new FTC laws state that these debt settlement agencies can not collect any fees from the consumer until they have fulfilled their obligations to create a debt settlement plan that the creditors agree to. This is a huge advantage for consumers, since they do not have to pay anything up front to receive help. Many times bankruptcy was chosen because the fees were less than going through debt settlement. Debt settlement can cost a lot, because there is a lot more work involved, however an already struggling consumer many times does not have the money.

Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state


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