subject: Credit Card Settlement Programs - How The Bad Economy Could Help You Settle Debt For Less [print this page] Credit Card Settlement Programs - How The Bad Economy Could Help You Settle Debt For Less
The US economy is not doing well and this is because of the recession. Though the recession is over, the effects of recession still remain. People are still jobless and they do not have ample income to pay their credit card debts on time. The consumers are no longer able to go for bankruptcy because the laws have changed and filing bankruptcy has become difficult. The only best option that the consumers are left with is the method of credit card debt settlement programs.
Since the economy was not doing well, the consumers filed for bankruptcy and the bankruptcy filings increased at a very high pace. The alarming rates of bankruptcy filing caused enough damage to the creditors. The creditors failed to manage their costs and this happened because of the fact that the creditors lost billions of dollars because of bankruptcy filings. The creditors have now become financially weak and they are fighting hard to maintain the internal equilibrium of their organizations. They are afraid that if the consumers again start for bankruptcy filing, they will no longer be able to hold for long and they will become bankrupt themselves.
It is this fear of the creditors which is utilized in credit card debt settlement programs. The creditors are threatened by the professional negotiators that if they do not waive the debt of the consumers by at least 50%, the consumers will be forced to file for bankruptcy. A bankruptcy filing will again mean 100% loss for the creditors and hence they agree. The supporting factor is that the government has come up with some policies to help those creditors who agree to settlement deals. These creditors are required to pay less taxes and they can use government aid to cover some of their costs.
Thus, since the creditors are agreeing to settlement deals and since bankruptcy filing has become a far cry, it is wise that you take advantage of this bad economic condition and get out of your debts as soon as possible.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement.
