The option of debt settlement for the people suffering from financial difficulties is one of the best because through this option people are able to get a reduction of almost 50% to 60% in the original outstanding amount of the loan.
However, it is worth mentioning here that this option has not been the ideal solution for the people due to the unfair and illegal practices of fraudulent settlement companies.
Due to the unfair practices of such companies, people suffering from severe credit crunch got a very bad image about these programs and they started to opt for bankruptcy as their final option.
Although, bankruptcy provided instant and immediate relief from all types of financial problems but it also remains a fact that it has large negative aspects as well which do not appear suddenly.
Basically, it destroys the credit rank of a person due to which people become unable to get co-operation for banks and other financial institutions in the future.
As increase in bankruptcy rate affects the economy of a country, so the Government was forced to take action and while doing so it introduced new federal debt relief laws with the help of FTC which have made the settling of bad credit card debt easier for the people.
So let us discuss some of the points due to which this process has become better.
No Need for Upfront Charges The new laws have made this process easier because now people don't need to pay even a single penny before the professional financial experts of the company are able to hold out a successful settlement plan for them.
So we can say that people don't need to have any fear about these programs now.
Support of Government Support of the Government has also been the major factor due to which these programs have become easy for the people because now the new laws introduced by Government bound every company to carve out a successful settlement deal for the people, if they want to get any type of money from them.
So, we can say that they need to work in the welfare of people in order to earn.