You may think that you are alone in debt and there is nobody to help you.
Well, you are wrong because the great number of consumers in debt has made the government take action and try to offer help and debt relief options.
New laws were issued to prevent consumers from making the wrong choice, like filing for bankruptcy but also steer them in the right direction so that they are not left to clear their debt alone.
Bankruptcy is now quite expensive.
This is because you will need to be legally represented in court; this means that you will have to hire a lawyer for the period which is usually one year.
We all know that layer can set you back financially quite a lot, and this is no exception.
And when in debt it is a worse time to spend money on a lawyer.
You will need to have all the financial documents for you to prove that you are unable to pay back your debt and that your only choice is bankruptcy.
Only then you will be declared bankrupt; and even now you are not over because it will take 7-8 years for your credit score to increase enough for you to be able to take another loan.
Think about your future and about what expense may occur in this period before you opt for bankruptcy.
But all the new laws don't just make bankruptcy harder but also make debt settlement easier.
The stimulus money program is another way for the government to help consumers clear their debt.
These funds are given to the major credit card companies so that they can afford to settle debt.
This causes for them to lose less money and so not be forced to increase interest rates for other clients.
The new legislation also says that you don't have to pay taxes when you reduce your debt with the help of debt settlement.
This eliminates yet another impediment and makes debt settlement that much easier.
All you have to do is take advantage of the new legislation and reduce your credit card debt like other consumers did before you.