Debt Relief Programs - How Consumers Will Benefit From New Debt Settlement Regulation

There are several debt relief programs available to those Americans who have found themselves in over their heads to provide assistance. The Debt Relief Act of 2010 that was recently passed by President Obama comes at a perfect time to provide relief to those Americans who find themselves with more than $10,000 in unsecured debt due to a poor economy. More and more people are finding themselves in this position due to lack of employment, or simply due to the dependence on credit cards that people have in today's world.

The newest debt relief program states that Americans can seek assistance from a debt settlement company for unsecured debt over $10,000. The law also states that these debt settlement companies are not allowed to charge any upfront fees for the use of their services. The sole purpose of these companies is to contact creditors and arrange for a settlement of debt that both the creditor and debtor can agree upon. Once a settlement is reached, the debtor would pay any fees for the use of the debt settlement company as well as monthly payments to the debt settlement company. That company will then in turn make payments to all creditors as agreed upon.

Consumers benefit from these types of programs as a form of debt relief that will ease the heavy burden of too much debt. These programs also benefit the consumer in the form of not having to file for bankruptcy, which in the past would have been the only solution. Bankruptcy can have many negative impacts on consumer's credit rating as well as ability to pay back debt.

In the extremely poor economy that Americans find themselves in today, this debt relief program couldn't come at a better time. As more and more people become educated on the programs available to them, it can be a huge form of assistance to millions of Americans. President Obama is aware of the debt problems facing Americans today, which is the main reason why this law was passed.

If you are falling behind on paying your bills then debt settlement can be a legitimate option to avoid bankruptcy and eliminate debt. It would be wise however to speak with a debt relief specialist before making such a decision. Check out the following link for free help from a certified debt relief specialist:

Free Debt Advice

Or Call: 800-963-3734

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