In today's economy many consumers are struggling to make ends meet
. As the interest rates on credit card keep rising, some Americans are finding themselves unable to make minimum payments. Many of them are starting to turn to the government for help. It makes sense given all the ads claiming President Obama has some sort of government bailout for consumers in credit card debt.
Government Grants appear to be a keyword in the search for debt relief, but do such grants exist? While the Government does provide thousands of grants for both organizations and individual consumers, the federal government does not provide grants specifically for personal debt. In some cases local governments might have special fund for local citizens, but this is a rare finding. So why are there so many ads claiming the government provides these so called "debt bailouts"? The answer is simple it's a marketing tactic. By claiming the government is giving away free money those in debt are intrigued and click on the ads or call the number provided. They will soon find out there is no government grant but a debt relief agency pitching their services.
Consumers who are looking for credit card debt relief should not despair that such government programs do not exist, for there are similar services not affiliated with the government. Debt settlement tends to be the closest form a credit card bailout without having to declare bankruptcy. In this service A debt specialist can negotiate credit card debt amounts to up to 50% less. Indeed most of these companies are for profit this should not take way form the effectiveness of such services, after all in order for them to remain in business they must pay the bills.
By paying a debt settlement company reasonable fees they are able to talk with big creditors (whom in many cases would not talk to an individual consumer) and negotiate the debt to a reasonable amount the consumer can afford to pay off in a 24 to 36 moth period. The debt that is negotiated is completely erased and does not need to be paid back. Once the program is complete a person once drowning in credit card debt will be debt free. A persons credit score will suffer for some time, but nothing like that of declaring bankruptcy. many debt settlement firms offer credit counseling services after the program is complete. In the end a consumer in debt should weigh the pros and cons of such programs and determine if it is right for them.