Obama's Credit Card Debt Relief Bailouts - Is This A Legitimate Option For Debt Relief?
There has been a lot of talk about Obama's credit card debt relief programs and it's important to separate fact from fiction so consumers can find a legitimate option for debt relief.
Online, November 16, 2010 (Newswire.com) - There has been a lot of talk about Obama's credit card debt relief programs and it's important to separate fact from fiction so consumers can find a legitimate option for debt relief. The truth of the matter is that there is no direct consumer debt relief program sponsored by the Obama administration. There are however, new laws passed by the federal government that make certain debt relief options very favorable for consumers in need of financial help.
One of these options is known as debt settlement. Debt settlement is where consumers can negotiate and receive a discount in their overall debt balance. This is seen as the main alternative to filing bankruptcy and is only intended for consumers and small businesses that are experiencing a legitimate financial hardship. The typical settlement deal is negotiated for around 40-60% of your actual balance.
So why would creditors agree to settle your balance for less? The answer is pretty simple. They don't want you to declare bankruptcy. Creditors of unsecured debt know that if you declare bankruptcy they will likely receive none of their money back. Knowing this, if they believe you are legitimate bankruptcy candidate they are more than willing to negotiate and settle for a lower amount.
When people hear of Obama's credit card debt relief programs they usually can assume it is a debt settlement program . This is because the new laws passed under his administration has made debt settlement particularly advantageous. The new legislation limits the consumers' risk and makes it much more financially attractive to negotiate a settlement deal.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. 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.
Check out the following link for free debt help from a certified debt relief specialist:
Share:
Tags: bankruptcy, credit card debt, debt relief, debt settlement, Getting out of credit card debt, obama credit card debt relief, unsecured debt
