subject: Debt Relief - Obama's Stimulus Plan Inspires New Relief Program - Thousands In Federal Grant Money [print this page] Why do we need debt relief today? With unemployment at an all time high and people struggling to meet even the basic expenses, relief from debt is not a financial decision alone. It is also becomes a survival decision. When you are so far in to debt that you cannot think about and plan for your future expenses like college education and house purchase, then isn't it obvious that you need debt relief drastically?
Amongst the various debt relief options in the market, the best one is settlement of loans. Debt settlement, also known as negotiation of debt, involves a reduction of the principal amount by a significant percentage. You are talking of at least fifty percent discount here. In exchange of the discount, you will have to promise to repay the balance amount in full.
Not only will you have to make this promise but you will also have to act on it. You will have to provide details of an escrow account why you shall be depositing money on a monthly basis. The settlement company shall keep track of the escrow account and shall start negotiations once a sizable amount has been deposited. Of course, you can always insist that the company initiate negotiation on the basis of future deposits.
In any case, the amount in the escrow account shall be shown around to convince lenders to close the deal. If the lenders agree, then your debts will come down by more than half and the amount deposited in the escrow account will be transferred to the lenders.
If you employ the services of a professional, you will have to pay for their fees as well. If you negotiate on your own, you can be rest assured that all the money that you deposit will directly go towards your lenders. How has this become possible? Why is it that lenders are offering such fantastic deals?
The new debt relief program is a part of the various measures undertaken by the Federal government to help people get rid of debt. Consumer debt had reached alarming proportions and it was obvious that America would not be in a position to repay its debt properly.
The stimulus package was provided to lenders to boost them up and also to enable them to pass on the benefits to the average customer with minimum expenses and procedures. Take advantage of this option before the same is withdrawn and you are left with no benefit in your hands.
If you are one of the millions of Americans who has over $10,000 in unsecured debt, it is time you found out about the debt settlement options available to you. Due to the current economy an overwhelming amount of people are in debt, creditors are having no choice but to agree to debt settlement deals. To get free debt help click the following link: Free Debt Help
