Credit Card Debt Settlement Act 2010 - How To Legally Avoid Filing Bankruptcy And Eliminate Debt
The Credit Card Debt Settlement Act 2010 was recently passed and this is a big victory for consumers struggling with too much credit card debt.
This new federal legislation makes is much less risky for consumers to enter a debt settlement program.
Now consumers or small businesses that enter such a program will not have to pay a dime until their debts actually settle.
What used to be a very risky debt relief option is now the most affordable and best way to avoid bankruptcy.
If you are struggling to meet your minimum monthly payments then there are really only two options.
You can file bankruptcy or you can attempt to settle that debt for a lower amount.
With debt settlement consumers and small businesses are typically able to eliminate around 40% of their unsecured debt balances while paying back the remaining 60%.
While this will negatively effect your credit score in the short term, it is not nearly as bad as filing bankruptcy and most consumers are able to begin repairing their credit within 3 years.
So why would creditors agree to accept only 60% of your balance? The answer is simple.
They do not want you to declare bankruptcy.
They know that when you declare bankruptcy they will likely receive little to none of their money back.
Knowing this they would rather collect 60% of their money back with a debt settlement rather than risk the chance that you will be accepted for bankruptcy and end up collecting nothing.
This new federal legislation makes is much less risky for consumers to enter a debt settlement program.
Now consumers or small businesses that enter such a program will not have to pay a dime until their debts actually settle.
What used to be a very risky debt relief option is now the most affordable and best way to avoid bankruptcy.
If you are struggling to meet your minimum monthly payments then there are really only two options.
You can file bankruptcy or you can attempt to settle that debt for a lower amount.
With debt settlement consumers and small businesses are typically able to eliminate around 40% of their unsecured debt balances while paying back the remaining 60%.
While this will negatively effect your credit score in the short term, it is not nearly as bad as filing bankruptcy and most consumers are able to begin repairing their credit within 3 years.
So why would creditors agree to accept only 60% of your balance? The answer is simple.
They do not want you to declare bankruptcy.
They know that when you declare bankruptcy they will likely receive little to none of their money back.
Knowing this they would rather collect 60% of their money back with a debt settlement rather than risk the chance that you will be accepted for bankruptcy and end up collecting nothing.
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