There are more than one ways to eliminate credit card debt, but each option requires a lot of research because a mistake here can be very costly. The government has issued new laws or changed previous ones to make consumers use a debt relief option with much more ease and avoid the nasty side effects of bankruptcy. There is no point in eliminating debt now if it will be back in under a year and the situation will be far worse.
Credit card debt is especially hard to eliminate because it can grow very fast and once a few payments are missed, the total value of the debt will double the initial loan. High interest rates make any loan grow over night but in the case of credit card loans that are not paid on time; the result can be a bit more drastic. Many consumers are now in deep debt because they took loans in the past and with the current economic state, they find themselves unable to pay them back. Here is where debt relief options come to help.
Probably the most important option is debt settlement that suffered quite a lot of change in the past couple of years. This used to be a 50/50 chance when hiring a debt settlement company because there were so many shady companies on the internet that you would never know what the results might be. In most cases, the company took the fees in advance and didn’t do much for it. With the increased number of complains filled at the Better Business Bureau, a change was needed and it soon came. In 2010, a new law was made to stop irresponsible companies from making a profit off of desperate people. Debt settlement companies must only be paid by the client after they finish with the negotiations. This gives the consumers a big advantage and it also almost eliminates the risk of being scammed. Only the professional companies will survive this change and the result will get better and better.
This new law changes the whole industry and makes it more legitimate so that consumers can take advantage of it legally eliminate credit card debt.