In the aftermath of the economic recession, most of the consumers found themselves on the verge of bankruptcy.
The more the consumers filed bankruptcies the sooner the financial institutions began to decline.
As the end result, the whole US economy began to collapse.
The US government considers their financial institutions to be the backbone of their economy.
So that, the US president Obama, came out with a remedy to heal this fracture.
1) Obama's bailout plan for the year 2010 Under the 'President Obama Credit Card Bailout Program', billions of US dollars have been injected to the US economy and financial firms with the purpose of preventing socioeconomic failures.
In a roundabout way it is to protect the consumers who are falling for bankruptcy.
This has supported the consumers in large scale to stand against the financial pressures.
2) The reformed bankruptcy act-chapter 13 and 7 According to the new bankruptcy code, the consumers are required to go through a debt clearance program if they can allocate minimum $100 to pay off their debts before filing a bankruptcy (chapter 13).
The consumers are given chances to file a bankruptcy (chapter 7) only if they cannot meet the requirements mentioned in chapter 13, bankruptcy law.
This method indirectly has promoted debt reduction programs and has reduced the amount of people who are falling for bankruptcy.
Mainly due to those two reasons, the debt relief programs have increasingly gained popularity among those who are debt ridden.
Besides, the role of a debt settlement company within a negotiation session is undoubtedly commendable.
If you are feeling discouraged due to your indebtedness, this is the right time for your to resort to a debt settlement company.
Take the advantage of the conditions provided and lead yourself out of the maze.