Coming off one of the worst recessions since the Great Depression there are more Americans in need of credit card debt help than ever before.
For nearly two decades Americans were recklessly granted unlimited credit and now are paying the price.
If you are massively in credit card debt and are on the verge of filing bankruptcy, you should consider your debt relief options.
Bankruptcy should always be the last option.
For those that are in dire need of credit card debt help and feel that bankruptcy is the only option, think again.
Debt settlement programs have become a legitimate way to eliminate 40-60% of your debts while avoiding many of the consequences associated with bankruptcy.
Debt settlement will still negatively effect your credit score in the short term but not nearly as bad as bankruptcy.
The average bankruptcy case will negatively effect your credit for at least 7 years while many people can recover from a debt settlement after just 3 years.
Thanks to new federal laws passed October 27th 2010, debt settlement has become a far less risky option.
Now consumers that enter into a settlement program will not have a pay upfront fees.
They only have to pay a fee when their debts actually settle and the settlement company is able to eliminate at least 35% of their balance.
Basically if they don't perform, you don't pay.
Considering these new laws you should at least try to settle your debt for less before filing bankruptcy.
The risk has been significantly mitigated and credit card companies are willing to make deals.
They know that if you file bankruptcy they will likely get little to none of their money back so they'd rather settle and take back 50% rather than nothing.