Those who are in debt can put back their tensions and just relax since the government has taken the initiative now and people are flooded with legal options to settle the debts.
Moreover, the new rules and regulation, incentives given out under the Obama administration have marked solid grounds for debt settlement.
Also, Government's bail out policy is viewed by lots as a loophole within the banking law.
It will legally help you to get away from repayment.
This is the right time for the debtors to take advantage of a few loopholes in the credit and banking law.
First of all, if you are struggling with your debt due to the heavy interest rates then, you can now legally lower the interest rates of your loan.
A rocket high interest rate makes it almost impossible for the poor debtors to repay their loan in this lifetime.
However, if the rate of interest is lowered then, you are able to make large repayments every month and this way, clear off your debt.
By law, it has been mandatory for the persons under heavy debts to consider Debt settlement program and go for it.
This one option is considered by many as a loophole in the banking law, as it actually helps debtor bail out from debt.
You have to pay a nominal fee to the settlement agency, and they act as a negotiator between debtor and the credit company.
They will give you counseling, negotiate with creditors and reduce your debt up to 60%.
Taking help of a Debt settlement companies does affect your credit rating for some time but it is certainly better than having a credit history of bankruptcy.
Banking laws are normally very strict but this one is like a relief for debtors.