subject: Debt Relief Tips - How the Recession Has Effected Regulation of Credit Card Companies [print this page] Debt Relief Tips - How the Recession Has Effected Regulation of Credit Card Companies
Debt is one of the nasty effects that the recession has on the general public. It really is a vicious circle if you think about it. The recession is the result of the large number of bankruptcies filed by many companies. This used to be an easy way to clear debt and so many abused this option. But as the recession hit, even more consumers were forced to file for bankruptcy because they were unable to pay back their debt after they were fired or had their salary cut substantially.
The large number of consumers that couldn't afford to maintain their normal life style caused for a big demand of money; this fact combined with the high level of inflation has caused the credit card companies to increase interest rates. This in turn caused the consumers to have deep debt and so be forced to file for bankruptcy. The circle had to stop at some point in order for the economy to get back to normal.
First, consumers had to be discouraged from using bankruptcy as a way to clear their financial problems. The government issued new laws that made bankruptcy a lot harder and more expensive, requiring more paperwork and more time spent in court with an expensive lawyer. Then, consumers had to be given new ways to clear debt and provide help. Debt relief options were introduced and made popular with the help of some advertising but also due to the fact that they offered precious help.
Debt relief options had the purpose to help consumers pay back their debt by providing a plan, by reducing the interest rates and also b y reducing the total amount that needed to be paid. Consumers soon found these options a great way to clear debt and they started looking online for more information. This was a good way to find a company that can help them but there was a risk to find a fake company. The best way to find legitimate debt relief is to look into a debt relief network; all these companies work together to help consumers and all of them are legit.
Debt settlement is a viable alternative to filing bankruptcy. Most consumers are able to eliminate at least 60% of their unsecured debt while avoiding many of the negative consequences with filing bankruptcy. If you are over $10k in unsecured debt you will be eligible for debt settlement.
