The bailout money which has been so much in news has been one of the main reasons why so many people are being able to walk debt free.
With the recent recession the profits of large financial institutions had taken a major down turn and had brought them to the point of closure.
This was having an all rounded bad effect on the economy.
Many were losing jobs or had a failed business in their hands.
Hence grounds were set for many bankruptcies.
The bailout money was given to the large financial institutions to keep them in business.
This in turn has helped them to settle accounts for customers who are in serious need of it.
This has also helped the companies to get back a part of the loaned amount.
Any customer who has unsecured debt of ten thousand dollars or more is qualified for this relief program.
A customer needs to inform the credit company of his financial problem and his difficulty in repaying the remaining debt.
It is advisable to hire a debt settlement company for the process as the creditors would be quite difficult to persuade.
A good firm will know all the legal and financial ways of convincing the card company.
Once the company has been convinced then the customer will need a certain amount of money to negotiate a settlement.
In case the customer does not have ready cash it is possible to save up in an account for some time and then come for debt settlement.
During this time the creditor would be reporting a missed payment to the credit bureau.
A good negotiation can get the customer a debt elimination of about 40 % to 60 % of the total balance.
A debtor must remember that this method does have some negative impact on the credit report.