Debt Settlements - How Obama's Federal Stimulus Money Has Impacted Debt Settlements
Debt Settlements - How Obama's Federal Stimulus Money Has Impacted Debt Settlements
Credit debt has been a major source of worry for most US consumers. The recession has been a very difficult period for the credit card users. They have been struggling to make both ends meet even in good times. It is common knowledge that more than 50 percent of Americans have been living from one pay check to the next pay check in good times too. Savings has never been on the agenda of the average US citizen. It is this sentiment that has always driven the consumer culture in the US.
With the recession came in the massive job cuts. Most people lost their day jobs making it very difficult for them to clear their credit card bills. As people kept loosing income opportunities their credit card debt went on the upward spiral. This sent them scurrying for debt relief. It is not only the common citizen who was affected. A large number of financial institutions too got into trouble. These financial institutions always made their profits from credit card users. If a few credit card users amongst thousands of debtors filed for bankruptcy it was no great deal. However the recession bought these institutions to their knees. The collapse of these financial institutions was predicted by most economists. This was the economic environment under which the 2008 presidential elections were held. The writing on the wall was clear. US economy was going to collapse if immediate measures were not taken.
Obama came to power with the promise of an economic stimulus to bail out the economy. He backed up his promise by inducing stimulus money to help out the ailing financial institutions. This lifeline is being used by the credit card companies to offer debt settlements. The debt relief mantra is to recover as much money as possible from the debtors. So the debtors pay only half the debt with the other half being taken care by stimulus money. Those people searching for debt relief must take advantage of the stimulus money and go in for a debt settlement.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement. To locate legitimate debt settlement companies in your state check out the following link: