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Guest post by: Bryan Garner Become an Author

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Over the past several years America has experienced one of the greatest recessions in history. The recession has created the need for help with unsecured debts, mortgages, loans, and the need for Debt Consolidation Programs. The supply and demand for these services has increased the amount of start-up debt consolidation companies over the years. This has also caused the need for government regulation on these Debt Consolidation Companies. The FTC amended the Telemarketing Sales Rule in order to ensure consumers are not being dwindled out of their hard earned money. It is now illegal for any Debt Consolidation Company to charge any fee’s until the Debt Consolidation service has been rendered. Meaning you will not owe any fees until the Debt Consolidation Company has saved you money. Which is great for the consumer’s but has presented a challenging task for the Debt Consolidation Companies that are offering the services. Debt Consolidation Companies now have to supply services and soak up the cost of operation for nearly six months before receiving any type of payment. The regulation on these Debt Consolidation Companies took effect in October of 2010.

During the past six months we have seen several Debt Consolidation Companies try to circumvent the new FTC rule by attempting to find loop holes in the rule with attorney based models or restructuring as a Non-Profit Company in order to collect fees upfront. Several Debt Consolidation Companies have had to close down due to their inability to adjust to the advance fee ban. In the end we all will have to adjust to the new regulations just like the banking and health care industry has had to make adjustments. It has been proven over time with the rise and fall of entire industries that you either change or comply with the times and government regulations or get left behind. Within the next few years there will only be a small amount of Debt Consolidation Companies left to provide such a needed service to the American public. When looking for a Debt Consolidation Company to help you manage your finances make sure to do your research as to how long the Debt Consolidation Company has been in business, what accreditations they have, and their Dunn & Bradstreet reliability report.

A Debt Consolidation Program is an agreement between a debtor and a creditor to fully satisfy a debt for a reduced payoff amount. It involves a team of professionals who negotiate a lump sum payoff amount with your creditors to be paid out over the next 6 to 36 months. The client achieves this with a lowered monthly payment. It is not a consolidation loan or credit counseling service. A Debt Consolidation Program will reduce your current outstanding total balances by 20-80% depending on the status of your accounts and your ability to prove your financial hardship.

These programs ARE NOT designed for consumers who CAN make on time monthly payments and are simply mad or upset with creditors for raising interest rates, minimum payments or both.

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Referred by: http://www.creditalliancegroup.net

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