The recession and the economically hard times have really hit people and the organizations hard
, especially the financial institutions like the banks. People who have borrowed a lot of money and have made a lot of purchases using credit cards are unable to pay the dues back as their financial abilities have taken a hit and they have lost their jobs.
As the banks have lent out a huge amount of money and the debtors are unable to pay them back, this creates a very difficult situation. The Federal Debt Relief Program has been a welcome relief for many such debt ridden people who have been unable to pay their dues back.
The Federal Debt Relief Program has tried its best to reduce the debt burden of the debtors through a series of measures. Let us take a look at the various measures that the Federal Debt Relief plans have taken to ease the debt burden of people.
These programs have been able to consolidate a number of debts from one single individual into one single loan. The benefits from this program are a considerably reduced loan amount; minimum or no late penalty; and softer terms and conditions than before.
However, the problem with his approach is that this is not going to work if the loans are taken from different financial institutions and they might not agree to the arrangement. This plan applies to several credit card bills, electric bills, phone bills and others.
Debt Settlement has been another important component of the debt relief programs. The organizers of these relief programs aim to settle the debt in a manner so that the debt burden for the debtors comes down notably. The main benefits for this program are minimal no follow up calls from the financial institutions for recovery of loan; the reduction in the interest rates of the total debt or loans; softening of terms and conditions and so on.
The Debt Management program enables the individuals who have taken the loans from banks or financial institutions reduce their burden by about 40% to 60%. The main benefits for this program are minimal no follow up calls from the financial institutions for recovery of loan; the reduction in the interest rates of the total debt or loans; softening of terms and conditions and so on.
The individuals send a lump sum amount to the credit settlement form and it is the responsibility of the firm to equitably distribute the amount among the debtor institutions, if there happen to be many.
This program has been equally beneficial because not only does it enable an individual alleviate the loan amount burden, but also enables the banks to recover their dues partly.