subject: New Debt Settlement Laws - How Stricter Regulation Of Debt Processes Helps Consumers [print this page] The number of people dealing with large amounts of debt has steadily increased these past few years and fear of a bankruptcy explosion have prompted authorities to develop debt relief methods that will help both debtors and creditor maintain their financial status. The problem with these methods is that some of them are not quite easy to use or may still have some problems when it comes to their effectiveness because of all the different factors involved.
Of all the available methods, settling is the most important and effective one, as it addresses large amounts of debt and in doing so, limits the number of people filing for bankruptcy. By negotiating with your creditor, you can get him to eliminate forty to seventy percent of your debt, through cutting things like annual fees, payment penalties and a lot of accumulated interest. But getting such a good deal is often not accessible for the average debtor, as he may lack the necessary experience and information to properly handle the negotiation process, so it is advised that you use settlement companies.
The problem with this type of company is that there are a lot of small, shady ones that may not be very good at getting good deals, but that charge their customers significant anyway, making them lose even more money and ultimately affecting the economy. But the new legislation has addressed this issue and made it so that it is now illegal for companies to ask for upfront fees if they have not settled your debt. This means that a customer will not have to pay anything if they have not received the services that they were promised, thus not adding any more debt to their bill.
This measure will certainly clean up the settlement market, making a lot of the fraudulent or shady companies disappear for lack of customers and help the legitimate ones prosper. It could even get fees to lower, since there will be more people willing to settle with the new safer conditions, making it better for both debtors and creditors and saving the economy from almost certain collapse.
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.
New Debt Settlement Laws - How Stricter Regulation Of Debt Processes Helps Consumers
By: Brendon Calvert
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