The economic crisis has been a terrible thing for those that already had debt problems since it only served to aggravate the situation and cause a lot of people to seriously consider filing for bankruptcy.
The debt relief methods created were sometimes not enough either, since some of them are somewhat risky or expensive to use, especially for a person with very limited income.
But the new laws developed by the government are trying to resolve this issue, especially when it comes to debt settlement, which is one of the most effective methods of eliminating debt.
By negotiating, you can get your creditor to eliminate forty to sixty percent of your debt consisting of annual fees, payment penalties and a lot of accumulated interest.
But in order to get a good enough deal, you will most likely require the services of a debt negotiation company and finding a good one is sometimes tricky, especially since there are lot of fraudulent companies or ones that don't really deliver what they promise.
The new legislation now prevents negotiation companies from charging upfront fees which means that you will not have to pay if you don't receive what you were promised: a good settlement deal.
This will certainly cause a lot of the small, shady companies to disappear from lack of funds thus eliminating a good portion of the competition.
Legitimate companies will thrive since they will have a lot more customers brought on by the increased safety and smaller market to choose from.
With all the new changes, customers are bound to pay less for the services they receive, or at least pay efficiently, meaning that they will only pay for the services they will actually receive.
They will be receiving better quality services, at a lower risk and cost and this will ultimately lead to a much faster improvement of the economy on the whole.
All in all, the new debt settlement legislation is a great thing for all those considering eliminating their debt this way since it brings a lot more safety into the process.