Federal Debt Relief Program gives a breakdown and primer of the various debt relief options available today.
Online PR News – 19-March-2010 – – Consumers and businesses today have a great and justifiable need for credit card debt relief programs and services. Mounting job losses coupled with the tightening of credit have left many individuals, families and scrambling to cut costs and make ends meet. Federal Debt Relief Program gives a breakdown and primer of the various debt relief options available today.
Debt Settlement - One of the newest credit card debt relief programs today. Also known as debt negotiation and debt arbitration, debt settlement involves a debt settlement firm aggressively negotiating on behalf of the consumer in debt with their creditors to reduce the amount of debt owed. A typical debt settlement plan is able to reduce credit card debt by approximately 50 percent.
Therefore, if a consumer has $10,000 in credit card debt, that debt in most cases can be negotiated down to $5,000 or less. This often proves to be all that is necessary to get consumers out of the financial hole which they have been in. This program also provided much needed help with medical bills.
This type of program does not work overnight. Depending on the amount of debt that is owed, a typical debt settlement plan takes 12 - 36 months to complete. After the final settlement payment is made, the consumer's account(s) will be settled, with none of the original debt outstanding.
Other credit card debt relief options include debt consolidation & debt consolidation loans, consumer credit counseling, and bankruptcy. This latter option however should only be considered in the most extreme debt cases, and only as a last resort after all other credit card debt relief options have been considered and eliminated. Bankruptcy alternatives are first recommended.