Describing the fact that a de-facto credit card bailout is in effect nationwide
, a sort of national debt relief program that is available in all 50 states. Not put together by the government, but by some of the brightest minds in the financial services industry, which can eliminate large amounts of credit card debt. It would be important for the uninformed of the abyss formed within the budget within the realms of expected revenue and its fiscal deficit.
The twilight of the credit card saga is not certainly over but it is definitely murkier than ever before. The government has dedicated its entire resources towards the restructuring of the Wall Street. Fat pay checks of multibillion dollar enterprises are no longer possible and the government is now spending to get organizations that will rectify this wrong for a price.
However with a jittery nation still in the dawn of the subprime crisis, is yet to recover completely, has hastened its efforts in increasing or rather decreasing the credit fall out.
Debt Settlement
A few among the many would be the debt settlement issue. The customers and businesses could register themselves and have the negotiations being done on their behalf by a debt settlement firm as an arbitrator. The negotiations would result in a debt settlement in all cases or at least 50 percent reduction in the debt owed.
It should be noted that the origin of the debt settlement firm has no clear links with the governments issue on debt relief. Another well known program in the issue of national debt relief is of debt consolidation which involves the consolidation of all debts and one single loan to pay off the rest.
However many are of the opinion that the programs will provide the customers with a bit of more leverage which would not be helpful in the long-run for the economy. The general opinion is that the customers borrowed too much over the past 10 years; the answer to the problem thus does not lie in putting them into more debt.
Credit Card Scenario
It seems that the credit card bailout will not cause the credit card industry to implode. The credit card companies have survived in the past economic downturns because of their flexible pricing. They can charge late fee or increase the interest rates. However with the credit division of Citibank loosing around 902 million; even this picture seems to be getting murkier by the day.
Still, not all would agree that the situation is nearing desperation. The credit card bailout is being linked to the likes of the mortgage industry down trot. It is believed that the credit card industry will not suffer the same fate as the mortgage industry. In spite of the fact that credit defaults will be nearing a record of 97 billion.