Credit card debt relief – how to qualify for a credit debt relief bailout

Sept. 27, 2010 - PRLog -- In order to counter the impact of the economic recession on the financial industry in the US, the Obama government came up with a bailout plan by which stimulus money was pumped into the ailing financial institutions. The bailout came at a time when the industry was reeling under the blow caused due to the bankruptcy filings being carried out by debtors at a very large scale. This was despite the fact that the bankruptcy laws were made much more stringent in 2005 and it was no longer easy to file for bankruptcy.
The stimulus money granted by the government to the financial institutions helped them to stabilize their operations and helped to save them from collapse. This also had an impact on debtors as the lenders were now open to cascade the benefits to them in the form of debt settlements. This was mainly because a bankruptcy filing by a debtor means that the creditor stands to lose the entire amount that was lent out in addition to the legal battles that accompany the filings. Through debt settlement, they were now able to recover at least a part of the amount they had given out. The remaining amounts were written off - this was made possible because the bailout packages compensated the loss to some extent. The government also encouraged financial institutions and credit card companies to go in for the option of debt settlement by offering them incentives.
For the debtor, these measures were a boon. Consumers who were struggling to overcome the accumulated debt caused by defaulted repayments could now see a way to eliminate the debt without having to repay the entire amount. Debt settlement could be made either in the form of lump sum payments or through easy repayment schedules. This meant that they could repay the debt without compromising on their basic needs and accumulating further debt. The debt settlement option made it possible to do away with the debt burden by having 30-70% of the original debt balance waived off and this meant less stress and a more comfortable life for the debtors.
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If you are struggling with paying back your credit card debt or any other unsecured debts there is legitimate help out there. Debt settlement usually makes financial sense for consumers with over $10k in unsecured debt. There are also other options available. To talk with a debt relief counselor for free help check out the following link:
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(http://www.debtreductionexpert.com)

Or Call - 877-853-6466