Credit Debt Relief – What’s This Obama Credit Card Debt Relief Bill?

You might have seen some articles on the internet which refer to the “Obama credit card debt relief bill”. If so, then simply ignore their wild claims, because that there is no such thing as the “Obama credit card debt relief bill”. Actually, many of the claims attached to this bill are wide off the mark and are only been used as a way to hook the needy reader into singing up to a credit card debt settlement program. Amongst the many crazier claims, been made on these articles, is the suggestion that the credit debt settlement company can only charge you if they manage to reduce your debts by more than 35%. Some even claim that the government is going to personally underwrite up to $10,000 of all American credit card holders debts. The Obama Credit Card Debt Relief Bill Doesn’t Exist So, let’s straighten out one thing here. There is no “Obama credit card debt relief bill” nor is the government going to underwrite any citizen’s debts. In reality, back in September 2010, the Federal trade Committee (FTC) made some intriguing changes to the credit card debt relief law. They were attempting to counter the abuses which were taken place by some negligent credit debt relief companies. Basically, some credit debt settlement companies where charging high upfront fees and then under delivering on the debt relief. As there were so many credit card debtors signing up to the debt settlement programs some of the credit debt relief companies simply accepted everyone’s case, even if there was no possibility of making a reasonable debt settlement. Why? Because regardless of the result, the debt settlement company would receive payment; indeed in some cases they even dragged on the settlement process and made substantial profits by charging their clients servicing charges as well as the upfront fees. As a consequence of this, in 2010 the FTC made amendments to the credit card debt law; so that the credit card debtor now has substantial financial assurances upon entering a credit card debt settlement program. So what changes have come about as a result of the new amendments to the credit card law? As a consequence of these legal changes, the credit debt relief companies cannot charge any upfront fee; rather they can only charge a fee once they have significantly reduced at least one of the debtor’s credit card bills. Indeed, they can only receive the fee once the debtor has made at least one payment to one of their credit card companies, whom they pawed money to. Also, the bill and the fee have to be proportionate to the amount of money which has been reduced from the client’s debts. Furthermore a special bank account is set up, upon signing up to the credit card debt settlement program, however it is under the control of the client at all times. How Does the Credit Card Debt Relief Legislation Affect Me? As a consequence of the changes to the credit card debt law the debtor, who signs up to a credit debt settlement scheme, can do so without any fear of been taking for a ride by the credit debt settlement company. Unfortunately the credit debt relief industry is filled with misinformation, because of commission hungry organizations and individuals who will feed you any kind of spin in order to get you signed up to their debt settlement program. Such claims simply cause confusion. In reality, credit card debt settlement is a great form of credit debt relief for a certain kind of debtor. But it’s not every single debtor. Who will benefit from a credit card debt settlement plan? Usually credit card debt settlement is most suitable for debtors who are facing bankruptcy and who would prefer another credit debt relief option, even if it too has some negative downsides, as long as they don’t have to file for bankruptcy. If this is not your profile, then consider other credit card debt relief options. However, if this sounds like your situation, then go ahead, because in the vast majority of cases credit card debt settlement produces a better outcome than bankruptcy. Also, if you are considering debt settlement as a possible credit debt relief option, then please do some research prior to signing up. It is vital for you to take responsibility for your own financial future, which means that you have to overview the credit card debt settlement process, if you want to guarantee a good outcome. So forget about President Obama. When it comes to settling your debts, you have to make it on your own. However, thanks to the recent changes in the credit card debt law, as long as you take these tactical steps you can make the great credit card debt relief savings via a credit card debt settlement program.