New FTC Debt Regulations Are Applauded By Consumers And Legitimate Debt Settlement Companies
There are many consumers in debt that need help because they can no longer pay the creditors back each month and clear their debt
. The recession affected a lot of people and many lost their jobs as a result. With loans taken and with not possible way to meet the payments, there is no wonder why so many are now in deep debt and are forced to file for bankruptcy and so ruin their long term credit.
The Federal Trade Commission is responsible for the oversight of debt relief options that help consumers in need. Debt settlement is a very popular option and it is used to reduce the amount of debt and not eliminate altogether like bankruptcy does. The good thing is that, unlike bankruptcy, debt settlement is affordable and it doesn't affect your credit score in a bad way. Actually, once you finish with the payments and you pay back the rest of your debt, your credit score will be in good shape and it won't affect your chances to get another loan or a new job. Debt settlement, if done correctly, usually results in a reduction of 50% but there have been cases in which a debt settlement company managed to reduce the amount of debt of their client by 70%.
The laws for settlement aren't really stable and quite a few things have changed about it. The newest and probably the most important law is the one that bans debt settlement companies that take upfront fees. These are usually the shady companies that did a lot of scams and took money off of desperate consumers in debt. Consumers are very happy with this new law because now they can find a settlement company online much easier and they no longer risk every time they contact one.
Once the settlement company is done with the negotiations and if the result is satisfying, you can pay them the fee and start saving for the rest of your debt. After you have all the money you need to pay the creditors for what you still owe, your debt will be cleared without affecting your credit score and you can go back to your normal stress free life.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link:
New FTC Debt Regulations Are Applauded By Consumers And Legitimate Debt Settlement Companies