Credit card debt relief programs used to be a somewhat risky option for getting out of credit card debt.
Not so much anymore.
New federal laws have made it much easier for consumers to legally eliminate a percentage of their credit card debt.
If your debts don't settle for at least a 40% reduction, you don't pay a dime.
The new federal laws were passed on October 27th 2010 and now it is illegal for credit card debt relief programs to collect upfront fees for their services.
They must reach a successful settlement with your creditors and be able to eliminate at least 35% of your overall debt balance in order to collect a fee.
While the average debt settlement deal is negotiated for around 40-60% of the overall balance, companies must meet that 35% reduction as a minimum standard in order to collect the fee.
This new federal legislation is making the credit card debt relief programs accountable.
They must now earn their fee through performance.
Sounds fair to me.
This legislation is expected to shut down all the shady debt relief services.
Only the legitimate companies will be able to survive this legislation.
The legitimate debt relief programs will have enough confidence to collect their fee on the back end when the debts actually settle.
The companies with a proven track record of successfully negotiating debt settlement deals will ultimately benefit from this legislation.
They won't make as much money upfront like they used to, but they will be providing a more legitimate option to help consumers get out of credit card debt.
Not so much anymore.
New federal laws have made it much easier for consumers to legally eliminate a percentage of their credit card debt.
If your debts don't settle for at least a 40% reduction, you don't pay a dime.
The new federal laws were passed on October 27th 2010 and now it is illegal for credit card debt relief programs to collect upfront fees for their services.
They must reach a successful settlement with your creditors and be able to eliminate at least 35% of your overall debt balance in order to collect a fee.
While the average debt settlement deal is negotiated for around 40-60% of the overall balance, companies must meet that 35% reduction as a minimum standard in order to collect the fee.
This new federal legislation is making the credit card debt relief programs accountable.
They must now earn their fee through performance.
Sounds fair to me.
This legislation is expected to shut down all the shady debt relief services.
Only the legitimate companies will be able to survive this legislation.
The legitimate debt relief programs will have enough confidence to collect their fee on the back end when the debts actually settle.
The companies with a proven track record of successfully negotiating debt settlement deals will ultimately benefit from this legislation.
They won't make as much money upfront like they used to, but they will be providing a more legitimate option to help consumers get out of credit card debt.
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