New federal laws are pointing to debt solution as a favorable option to bankruptcy. Before debt settlement laws took place many would attempt debt solution only to find out that they were at high risk of being scammed, which could drive them closer to bankruptcy. Thus they felt that bankruptcy was the only option. Now, however, President Barack Obama and the FTC are looking to change all of that.

Here’s what the new law means and why it favors debt settlement:

• Debt settlement companies won’t be able to collect upfront fees - or any fees until they do everything lined out in the contract that you and the debt settlement company draw up.
• Credit card companies get bonus money for agreeing to debt settlement, which helps them out.

For those who face bankruptcy who find that it is the only solution and has been for years, they may be a little skeptical as to why the new law favors debt settlement.

• Bankruptcy leaves huge scars one one’s credit card score, making it almost impossible to get lent too again.
• Credit card companies don’t get any money back and risk getting in trouble themselves.
• Individuals who declare bankruptcy are further to the edge than before and are unable to catch a break.

Now, with the new law regarding loan relief that says those individuals cannot collect upfront fees, people can find that they can get good loan settlement help thanks to the law. The loan settlement option is the best.

Finding unsecured credit card debt relief isn’t as hard as it looks. When you find credit card debt relief you will be overjoyed because really it is very easy to find out there especially with the new law put in place by President Barack Obama who promises now something that has not been done before - now no debt relief companies may collect any upfront fees without providing payment. Payment must come after providing services. Creditors are happy because they get their money, individuals get to prove their credit card score and nobody goes bankrupt, so everyone wins.

With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won’t have to pay a fee unless your debts actually settle. Check out the following link to locate legitimate debt relief companies in your state for free help.

Debt Reduction Help