Many people who are struggling to pay back credit card debt assume that their best option is to file credit card bankruptcy.
While this might have been true in the past it definitely is not anymore.
There is a better way to eliminate your credit card debt without having to file bankruptcy.
So what is it? For consumers that financially cannot pay back their credit card bills or are struggling to meet the minimum payments, there are really only two options.
You can file for credit card bankruptcy or you can opt for debt settlement.
With debt settlement, consumers use professional arbitrators to negotiate with their creditors for a reduced one time settlement.
The average settlement is negotiated for around 40-60% of the balance and only consumers who are truly on the verge of bankruptcy will qualify.
Debt settlement used to be a very risky decision for consumers and small businesses seeking debt relief.
Not so anymore.
New federal laws were recently passed which regulate the way the debt relief industry can operate.
Now, debt relief companies are prohibited to charge upfront fees.
Unlike the past where these companies had no accountability, they must now reach a successful settlement deal in order to get paid.
Most companies now will have to get at least 35% of your unsecured debt eliminated or they cannot collect a fee.
Only consumers and small businesses that are on the verge of credit card bankruptcy should consider a debt settlement.
You must also have at least a $10,000 accumulated debt balance between all your accounts to qualify.
Considering these new laws it has become a much better option for consumers.
If they can't settle your debt, you don't pay.