Credit Debt Bankruptcy - How To Take Advantage Of New Laws To Eliminate Debt

Due to the increased expenditures and improper financial planning, the debts on common man keep on piling. This thing led to many defaults on credit cards because of the difficulties people are facing while repaying debts. But now new debt settlement law introduced by FTC (Federal Trade Commission) has improved the situation and is very useful for a common man facing such financial crises. Debtor can eliminate 50%-60% of his unsecured debts very easily with the help of this law. This law provides the reduction of more than half in your total debt amount. All you need to do is have to select a best settlement company. There are many benefits of using debt settlement option.

First and foremost thing is that you should owe unsecured debts of at least ten thousand US dollars. Only then you can apply for a settlement option. If you fulfill this criterion then next step would be selection of a very reputed and experienced debt settlement company. This company negotiates your debts with creditor on your behalf. They don't charge any upfront payment from you. They simply understand your difficulties and financial situation and after analyzing each and every aspect they give you an idea of how much reduction you can get in your debt. If you feel satisfied with their proposal then you can continue with the same debt settlement company otherwise you can move to other companies also for better settlement option.

Once you are done with the company selection process, the company initiates the negotiations with the creditor and tries to get maximum reduction for you. Debtor can get 50%-60% reduction in total unsecured debt amount. Creditor also feels that a settlement is better option than letting debtor to file bankruptcy because bankruptcy would give nothing to creditor at the end. Whereas in case of debt settlement they are at least getting some of their amount back from debtor. Debt relief companies help you to get reduction in interest rates on your unsettled debt. After the debt settlement you need to pay to the debt relief company. These companies can charge maximum of 15% of settled debt amount. And this fee you can pay in installments.

We can say that the new debt relief law is advantageous to everyone i.e. to debtor, creditor and debt Settlement Company. But you should be very selective and think wisely before opting for a company because your one mistake can put you into many troubles.