Credit card settlement programs have recently gained significant popularity amongst a debt ridden American public.
Credit card companies are worried about the rising rate of delinquency accounts and are having no choice but to make debt settlement deals.
Credit card companies and other creditors of unsecured debt do not want you to file bankruptcy.
They know that if you file and are accepted for bankruptcy they will likely receive little to none of their money back.
Creditors of unsecured debt are the last in line to collect funds when a consumer files bankruptcy so they often don't receive any of it.
With more consumers and small businesses on the verge of bankruptcy creditors are beginning to make more debt settlement deals.
50% of their money back is better than none at all.
Credit card settlement programs used to be a very risky decision for getting out of debt.
This all changed however on October 27th 2010.
On this date new federal laws were passed that banned debt relief companies from collecting upfront fess for their services.
They are only allowed to collect upfront fees when they reach a successful settlement deal and eliminate at least 35% of the consumers' overall balance.
These new laws make credit card settlement programs a much more legitimate option for consumer debt relief.
The debt settlement process does work when done in the correct way and by the right company.
The good thing is that 95% of the shady debt services that were notorious for ripping people off have been put out of business.
Only the legitimate companies with proven track records are left.