It gives temporary relief and they make your financial situation worse.
Credit card companies will create fantasy stories to attract you but once you are indebted they will not take your side.
But the world economy is against you that you can not afford to pay off the debt.
Therefore the only option left for you is to eliminate your debt without paying it back in full.
Through this method you can pay a percentage of the debt and get out of it legally.
There are several methods to make this a reality and among them, debt settlement stands a higher rank.
The debt settlement companies have the capability of reducing your debt discussing with the creditors.
The creditors are also ready to give a chance for the settlement plans presented by reputed companies are as they are at a risk of not regaining their money.
They have realized that they can at least regain a portion of their money by accepting settlement plans.
But when the number of the settlement companies arises there are fraud companies which peep in to the field and try to mislead the debtors.
They have been successful up to a certain extent that some debtors have already become their victims.
To avoid this situation, the FTC (Federal Trade Commission) has taken a step forward by banning all the upfront fees charged from the debtors.
It means no settlement company has the right to charge the debtor until the debt is settled.
You all have to be convinced about these new laws brought up by the credit card debt settlement act of 2010 in order to avoid the fraud companies and get your job done legally.