subject: New Debt Settlement Laws - Why Debt Settlement Is More Legitimate Now [print this page] You may have heard that debt settlement is not the most secure option you can choose. This is due to the fake companies that ask for ridiculous fees in advance and promised anything you wanted to hear. A lot of consumers have fallen into these traps set by con artists and instead of getting out of debt as they were expecting, they lost all the money they had. These fake companies had to be stopped but it seemed like for every one they managed to shut down, another two rose again.
The government has decided to stop these fake companies from stealing more money and so new laws were set into action. In July 2010, this new law was issued that prevents any fees from being taken in advance by the debt settlement companies. Consumers only have to pay the company after they finish with the negotiations and the settled debt is as they promised. This makes it difficult for fake companies to function but also for small and inexperienced companies. As advance fees are no longer an option, all debt settlement companies must now negotiate and get good deals for their clients so that they pay the fees.
The market has changed in a great way thanks to this new law and the companies that managed to remain are now stronger and can provide better services and also the competition has decreased significantly. All consumers can benefit from this and the changes can easily be seen by just a search on the internet. It may seem like the deals are worse but the truth is that the fake advertise is now gone and you can actually get a reduction as big as 70%. Keep in mind that debt settlement cannot be used for every amount of debt but just for those that are over 10.000 $ and also if this debt is unsecured. The unsecured nature of these debts means that they can be negotiated and settled when the consumer can no longer afford to pay it. Some unsecured loans are personal, student and also credit card loans.
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 - Why Debt Settlement Is More Legitimate Now
By: ketty archer
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