subject: Erase Bad Credit Card Debt - Why It's Easier To Negotiate And Settle Bad Credit Debt [print this page] Erase Bad Credit Card Debt - Why It's Easier To Negotiate And Settle Bad Credit Debt
Are you willing to erase bad credit card debt? Well, in that case, you must know that it is now easier to settlement bad debt because of the two specific government policies which have helped the creditors to have a more lenient approach towards the consumers approaching them with settlement deals. The creditors are accepting settlement deals because they are aware of the fact that the government is backing them up financially. Apart from this, the creditors are aware of the fact the consumers will file for bankruptcy if the creditors decline settlement offers and this will mean billions of dollars of loss for the creditors. The two specific government policies which are spoken of are described below.
Policy 1: The government has release billions of dollars into the economy and called it to be stimulus cash. This money is for the use of those creditors who agree for settlement. Once the creditors wipe out the debts of the consumers by a certain percentage, they lose a portion of their principal money which they would have otherwise used to cover their costs. The stimulus cash helps them to cover those costs. The creditors are required to show a copy of the settlement deal in order to be able to access that money.
Policy 2: The government has announced reduction in tax rates for those creditors who agree for settlement deal with the consumers. A settlement means loss of interest earning for a creditor and when this happens, the loss of the creditor is multiplied if the creditor is required to pay the same level of tax. Thus, those who settle debts with the consumers are required to pay less in order to compensate for the loss of income.
This explains which negotiating bad credit card debts are now easier than ever before.
Debt settlement can make financial sense for consumers and small businesses that are experiencing a financial hardship and have at least $10k in unsecured debt. It is not the only option however.
