The new Tax Break law is indeed very good news for all those debtors who had trouble paying off their credit card debts. The most popular Debt Relief program Debt Settlement that many debtors would choose to settle their debts with has been fixed now.
The new Tax Break policy was promulgated because a lot of debtors who would opt for Debt Settlement program would become victim to a technical glitch. In Debt Settlement program the debtors could get to settle their debts without having to pay for the entire debt amount. The debtors can get a wavier of up to 60% on the total amount payable.
But the problem with this program came when the debtors had to pay tax even on the amount that was waved off. Therefore in order to address this issue the Tax Break policy was announced.
According to this law the debtors are no longer supposed to pay tax on the portion of the debt amount that was waved off. The debtors are often advised to negotiate for the settlement of their debts with the creditors through a Debt Relief company.
These companies have experienced professionals who are aware of all the laws and bureaucratic mumbo jumbo. They before hand aware their clients about the casualties of each and every decision that is made.
These companies offer an array of programs for the debtors to choose from. Each program is designed to deal with a certain situation. Those debtors who have trouble paying off their credit card debts because of the high interest rates are recommended the Debt Consolidation Program.
According to this program the creditor lends money to the debtor on very low interest rate. The debtor then pay back debt with the higher interest rate thus the debtor gets rid of the high interest rate and the creditor is assured that the debtor won't file for bankruptcy.
The debtors must take advantage of this situation, where the policies and laws are in their favor. The Debt Relief companies also provide free counseling services to their clients and they help them plan their budgets in order to control their expenses.
Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.
By: Samantha Cox
Check out the following site for free help from a certified debt relief specialist:
Free Debt Advice : http://www.freedebtsettlementadvice.com/
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