SOURCE: Total Debt Relief

September 28, 2010 12:30 ET

How New Laws Will Affect Consumers' Ability to Get Out of Credit Card Debt

As of Monday, Credit Card Debt Relief Laws Have Changed, so Can Consumers Still Eliminate Credit Card Debt? Total Debt Relief Explains

DALLAS, TX--(Marketwire - September 28, 2010) -  With consumer debt rising over the past few years due to economic stress, many consumers found themselves with very high credit card debt balances in desperate need for debt relief. With such a high demand for credit card debt help a debt relief service called debt settlement gained increasing popularity.

How does the program work?

The aim of a debt settlement company is to eliminate a consumer's unsecured debts through a negotiation process with the big banks and other creditors. If a consumer remains in the program and the negotiation process is successful a consumer could potentially eliminate up to half of the debt owed.

Does it work?

The program does work so long as the consumer remained in the program and didn't drop out. Unfortunately many consumers get a little anxious or start missing payments and leave the program.

What to watch out for?

Like with anything that gains popularity, debt settlement had some bad seeds in the industry and some fraudulent companies took advantage of consumers in debt by not successfully negotiating debts and taking the consumer's money anyway.

How the new laws will help

The Federal Trade Commission recently created new rules preventing debt relief companies from fraudulently charging a consumer for debt relief services. In the coming months debt settlement companies will only be able to charge fees if they actually negotiate or reduce the debt amounts.

Can consumers still get credit card debt help?

Yes, the laws set in place are meant to protect the consumer and cut down on illegitimate debt relief agencies. In theory those looking for debt relief will have better protection against fraud and malpractice.

For those Americans struggling with credit card debt there are still options available that don't require bankruptcy. Most debt settlement companies offer debt consultations for consumers to learn more about their program to see if it is a good fit.

Total Debt Relief offers a free debt consultation which can be taken advantage of at their company website:

Contact Information

  • Contact:
    Rob Jones