subject: Credit Card Debt Relief - How to Reap the Benefits of Debt Relief Grants [print this page] In order to counter the economic crisis the congress has passed the American Recovery and Reinvestment Act. This act aims at saving jobs, creating new jobs, increasing economic activity, investing in long term economic growth and lastly increasing the transparency in government spending. This bill has enabled millions of families to gain financial stability through the credit card debt relief programs.
During these economically tough times, unemployment has been on an all time high. People are struggling to meet ends. Paying debts has become difficult for many debtors. Every time the debtor misses out on his payments, there is risk of the interest rates and penalty charges being pushed further up. Under such conditions debt relief programs becomes a necessity.
Since the government has given millions of dollars as stimulus money to the large financial institution. They are now in a position to bargain a settlement with their debtors. With their losses covered, they can now waive off a certain percentage of the debt so that the debtor can settle their accounts with them.
It is possible for the debtor to negotiate a settlement himself if he is confident about his bargaining skills. If the debtor does not feel confident, he can take assistance of reputed debt settlement companies. However, before you hire any agency, it is necessary to find as much about the company as possible. This is to ensure that you have hired a good settlement company.
A debtor has to offer some money to his creditors in exchange of the settlement. The amount can vary in the range of 40 % to 60 % of the total balance. Hence, a debtor should have at least 50 % of the total debt amount before he proceeds with the settlement negotiation. Through this method the debtor is free to walk away from his debts by paying as less as 50 % of the total amount.
Credit Card Debt Relief - How to Reap the Benefits of Debt Relief Grants
