subject: Consumer Debt Relief - Why Creditors Will Agree to Eliminate Consumer Debt? [print this page] Consumer Debt Relief - Why Creditors Will Agree to Eliminate Consumer Debt?
Trying to pay off loans is quite a big deal these days and you could be among the millions of American trying to return to financial solvency.
Yes, the figures may seem mind-boggling but millions of Americans are facing financial problems compounded by the recession and are looking at consumer debt relied options to bail them out of a jam. Not surprising, because a staggering 60 percent of Americans owe money on their credit cards and are unable to fulfill the payment obligations, all keen to shake off the burden of debt off their backs.
Two-way street
It is not just debtors who stand to gain from consumer debt relief but creditors as well. Because of the severe financial climate, they are just as keen to hop on the bandwagon to help eliminate consumer debt.
Actually, they really do not have much of a choice. Once again, because of the financial crisis, they, too, are finding the going tough. No longer can creditors get fat off interest rates charged to consumers who were on a credit-fueled spending spree and were able to pay the dues in happier times.
Now that debtors are exhausted from all the spending and the bills keep coming, they are seeking consumer debt relief. Creditors now find their source of income severely restricted so they are more than willing to offer even reduced interest rates down to even a single percentage point and extent repayment periods.
They have no choice actually as many debtors may well choose to declare bankruptcy and let the chips fall where they may. If that happens, the creditor gets nothing and is left holding a bad debt which would affect the bottom-line.
In fact, bank managers and other financial officials are ready to entertain debt negotiators acting on a debtors behalf to help sort out payment issues. This is a far cry from the past when debt was non negotiable and the most fervent pleas for consideration of new payment options fell on deaf ears.
If creditors stood their ground and clung to their stance of the past, most would go out of business in a jiffy. They now have to appear to be on the side of the debtor in order to make money, even if it is just the principal.
Debtors are now a relieved lot as at least creditors are willing to see their side of things and offer some flexibility. However, it is best not to be fooled by this new-found generosity. It is not coming from the heart but because of the hard realities of being in business with a profit motive.
Capitalism, after all, continues to hold sway.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the legitimate debt services. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
