subject: Card Debt Relief Bailouts - Is Debt Settlement Really A Personal Bailout Package? [print this page] Card Debt Relief Bailouts - Is Debt Settlement Really A Personal Bailout Package?
There is controversy on whether credit card debt relief bailout really exists or not. Some people say that settlement is a personal bailout package. In fact, the truth is that debt settlement is not really a personal bailout package. This is because of the fact that in bailout, direct financial help is rendered to the person in financial trouble. This is not the case in settlement. The consumers do not get direct financial aid from government or anyone else. The help that comes is in the form of policies which make settlement a legal and legitimate method of eliminating unsecured loans.
Of the several policies that the government took, stimulus cash for the creditors, tax reduction for the creditors and the ban on up front fee collection by the settlement firms, none of them are for direct financial help to the consumers. The consumers can actually make use of these policies and acts to force the creditors to agree for settlement deals. This means that the consumers can indirectly save money. Once the creditors agree for settlement, the consumers need to pay only a fraction of the total money that they owe to the creditors and the rest is not supposed to be paid.
The money that the consumers do not pay is a savings for them. This money that the consumers save can help them to make their financial condition stronger. This might be the reason that some people consider that settlement is a personal bailout package whereas, it is actually not. It is merely helping the consumers to pay less.
With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.
