subject: Debt Settlement Info - What Obama's Credit Card Debt Legislation Means For You [print this page] You may have heard about the latest CARD act passed by the government and its enforcement as a law. This is the latest attempt by the government to help credit card issuers overcome financial problems. There are many beneficial features in this law. In the same way, there are many criticisms as well.
Whether the law is a good one or not is something that only time will tell. In my opinion, there are many instances and provisions in the law which punishes the good credit card holders. Critics point out that the Card act has made it difficult for lenders to take action against those who skip repayment. In such a scenario, it is but obvious that loss suffered by credit card issuers will be borne by those who repay their debts on time.
Well, this may be a valid criticism in the long term but when majority of Americans are facing credit card problems, one need not be a rocket scientist to conclude that relief must be provided to such individuals. The universal default rule and the double billing concept have been outlawed. This is a very significant improvement over the past policies of card issuers.
Universal default rule was particularly troublesome because even a minor dispute with the utility service provider was enough to lead to an increase in the credit card interest rate. Today, that is not going to happen. The credit card issuer is going to take action against only if you skip payment on that particular account.
The bonhomie and fraternity between all lenders has ceased; at least in the eyes of the law. Of course, this does not mean you can stop paying your utility bills. What this means is that you need not worry about your financial life going out of control just because you defaulted on one utility bill by mistake.
Secondly, the Act has made it easier for individuals to get out of debt by making use of debt relief options. Credit card issuers do not have the patience to enable financially troubled card holders to make repayment. The option of going in for a fifty to sixty percent waiver to settle debt will become a lot more popular. Of course, you will have to play your card right and make use of the right debt settlement service provider.
The credit card issuer may use settlement as another method to increases your repayments by waiting for you to default on the same. The onus is upon you to make sure you choose the right plan and complete it so that you completely free of debt.
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
