Debt Relief Options - How Government Stimulus Money Has Led to Attractive Debt Settlement Deals
Debt settlement is not new and debt settlement with credit card issuers also is not new.
There are numerous individuals who have successfully convinced their credit card issuers to settle for a less than borrowed amount in the past.
However, such settlements were very few and very far in between.
Further, the creditors never had any incentive to provide a generous settlement deal.
It was only if the individual had borrowed close to $100,000 or more and was so far in to debt trouble that even recovery of a few thousand dollars was impossible that the credit card issuers came up with the idea of debt settlement.
In most cases, the credit card issuers never allowed the debt problem to arise to such an extent.
Today, a few factors have changed and that is the reason why debt settlement has become more popular.
For starters, the debt problem has affected a large number of individuals because of the recession.
It has become difficult to earn a steady income today.
This is the primary reason why credit card defaults became very common.
People just did not have sufficient cash in hand.
Credit card issuers realize that the situation was unsolvable unless they came up with something new.
That is the reason why debt settlement became very popular amongst the masses.
Secondly, the stimulus package has played a major role in helping the lenders absorb the losses.
Even with the threat of bankruptcy, credit card issuers would have preferred sticking to a high recovery amount.
They might have offered a 20% discount and might have insisted on the balance.
Or, they might have offered a 50% discount and might have insisted on instant repayment of the balance amount.
It is only because of the stimulus money that they are prepared to offer a 50% to 70% discount and an installment facility to repay the balance amount.
If you remove the installment facility, you realize that the settlement transaction is not as attractive as it seems.
Hence, all credit to this point goes towards the government funds.
As long as these funds are present, credit card issuers will see no reason to encourage bankruptcies.
If you take advantage of this solution today, you might be prepared for the boom that will follow when the recession ends.
The best part is that it is not very difficult to qualify for debt settlement.
Again, you will have to thank the stimulus money for that.
There are numerous individuals who have successfully convinced their credit card issuers to settle for a less than borrowed amount in the past.
However, such settlements were very few and very far in between.
Further, the creditors never had any incentive to provide a generous settlement deal.
It was only if the individual had borrowed close to $100,000 or more and was so far in to debt trouble that even recovery of a few thousand dollars was impossible that the credit card issuers came up with the idea of debt settlement.
In most cases, the credit card issuers never allowed the debt problem to arise to such an extent.
Today, a few factors have changed and that is the reason why debt settlement has become more popular.
For starters, the debt problem has affected a large number of individuals because of the recession.
It has become difficult to earn a steady income today.
This is the primary reason why credit card defaults became very common.
People just did not have sufficient cash in hand.
Credit card issuers realize that the situation was unsolvable unless they came up with something new.
That is the reason why debt settlement became very popular amongst the masses.
Secondly, the stimulus package has played a major role in helping the lenders absorb the losses.
Even with the threat of bankruptcy, credit card issuers would have preferred sticking to a high recovery amount.
They might have offered a 20% discount and might have insisted on the balance.
Or, they might have offered a 50% discount and might have insisted on instant repayment of the balance amount.
It is only because of the stimulus money that they are prepared to offer a 50% to 70% discount and an installment facility to repay the balance amount.
If you remove the installment facility, you realize that the settlement transaction is not as attractive as it seems.
Hence, all credit to this point goes towards the government funds.
As long as these funds are present, credit card issuers will see no reason to encourage bankruptcies.
If you take advantage of this solution today, you might be prepared for the boom that will follow when the recession ends.
The best part is that it is not very difficult to qualify for debt settlement.
Again, you will have to thank the stimulus money for that.
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