Credit Debt Relief Programs - Why Creditors Are Expected To Make More Debt Settlement Deals In 2011
Credit debt relief programs are widely available yet until recently they were probably not a good option.
In October 2010, the federal trade commission passed new debt settlement laws that are expected to increase filings in 2011.
Now consumers that enter into a credit debt relief program will not have to pay a dime until their debts actually settle.
This one change in the law has made it much more appealing for consumers and far less risky.
They don't perform, you don't pay.
Credit card companies and other creditors of unsecured debt are very concerned about the growing rate of delinquent accounts and consumers that are on the verge of bankruptcy.
Coming off one of the worst recessions since the great depression, many consumers are left with massive credit card balances with simply no way to pay them back.
If it comes to paying the gas bill or paying the credit card bill, the former will almost always prevail.
The last thing that creditors of unsecured debt want is for consumers to file for bankruptcy.
They know that if the consumer were to file and be accepted for bankruptcy they would likely receive little to none of their money back.
In an order to prevent consumers from filing bankruptcy, they are making more debt settlement deals.
Collecting 50% of their money back is better than nothing and considering the massive amount of people currently in debt, 2011 is expected to see more debt settlement deals.
Credit debt relief programs only make sense for individuals and small businesses that are experiencing a financial hardship and that have at least $10,000 in unsecured debt.
Considering the new federal laws that were passed, it has become a much better option and the best way to avoid bankruptcy.
In October 2010, the federal trade commission passed new debt settlement laws that are expected to increase filings in 2011.
Now consumers that enter into a credit debt relief program will not have to pay a dime until their debts actually settle.
This one change in the law has made it much more appealing for consumers and far less risky.
They don't perform, you don't pay.
Credit card companies and other creditors of unsecured debt are very concerned about the growing rate of delinquent accounts and consumers that are on the verge of bankruptcy.
Coming off one of the worst recessions since the great depression, many consumers are left with massive credit card balances with simply no way to pay them back.
If it comes to paying the gas bill or paying the credit card bill, the former will almost always prevail.
The last thing that creditors of unsecured debt want is for consumers to file for bankruptcy.
They know that if the consumer were to file and be accepted for bankruptcy they would likely receive little to none of their money back.
In an order to prevent consumers from filing bankruptcy, they are making more debt settlement deals.
Collecting 50% of their money back is better than nothing and considering the massive amount of people currently in debt, 2011 is expected to see more debt settlement deals.
Credit debt relief programs only make sense for individuals and small businesses that are experiencing a financial hardship and that have at least $10,000 in unsecured debt.
Considering the new federal laws that were passed, it has become a much better option and the best way to avoid bankruptcy.
