Credit Card Debt Settlement Act 2010 – How To Legally Avoid Filing Bankruptcy

If you are struggling with heavy credit card debt and feeling exhausted to find a legitimate way to eliminate your dues, you are left with two options. Either you can choose to file a bankruptcy suit or you can try to eliminate your credit debt for less with the help of a debt reduction program. Filing a bankruptcy case is not the first thing you should do if you are burdened with debt. It should be your last resort as it contains lots of disadvantages which will befall on your financial carrier. What about the other option- debt settlement?

Well, through debt settlement program, a consumer is given a chance to settle his debts for less than he in fact owes. The debt reduction programs are the only reduction programs which provide such discounts depending on the due debts the debtor owns. Under this method, it is likely that every consumer will receive 40% to 60% discounts depending on the amount they owe. Anyway, the interest will be wiped off as the initial step.

Under the new F.T.C. laws, the debt clearance programs are made more legitimate and trustworthy. The new set of laws has banned the debt clearance companies who demand the consumers to make the payments in advance. This step makes the survival of the fake debt relief companies very hard. In a roundabout way, it ensures the safety of the consumers who are debt ridden. It enables them to approach the settlement companies with confidence.