Debt Settlement Relief - How Obama's Tax Breaks Help You Eliminate Unsecured Debt
Obama has made a lot of changes to debt relief programs to help consumers deal with their debt but also maintain a good credit score
. Unlike bankruptcy that damages your credit score, debt settlement sees to it that you not only clear your debt but you also maintain a good long term credit. This will come in handy in the future when you need another loan or even when you want to change your work place, especially if you want to get a job in security.
Debt settlement doesn't eliminate your whole debt but it can eliminate more than half of it and also make it possible for you to pay the rest. When you clear such a big amount, it does count as an income on your part which you should pay taxes for. In order to make debt settlement smoother, Obama has decided to grant tax relief to this amount and so make it even easier for consumers to clear their debt. The creditors on the other hand, also don't need to pay taxes for this amount and they also get money from Obama's stimulus money plan. This makes debt settlement easier because now, the creditors get a part of what they reduce from the government. The deal was already better than the alternative but now they are more willing to negotiate a bigger reduction.
It is a good thing that the government is doing everything they can to help consumers clear their debt and also to avoid bankruptcy. This is no longer an option which you should consider because it is very expensive and although it may clear your debt it will damage your credit score for a long period. This will not only make it difficult for you to get a loan in the future but you will also have problems in getting a new job, especially if it is in security that needs a credit check.
Obama's tax breaks are a great way to get better deals and also clear your debt faster so that you can get back to the life you had before the recession and before these economic problems.
Debt settlement is a legitimate alternative to filing bankruptcy and often makes sense for consumers on the verge of bankruptcy. There are also other debt relief options available so it would be wise to speak with a debt relief specialist to go over your different options.
Debt Settlement Relief - How Obama's Tax Breaks Help You Eliminate Unsecured Debt