Personal Debt Bailouts - How Stimulus Money Encourages Creditors to Agree to Debt Settlements
The stimulus money might have been released in 2009 but the benefits continue to accrue to the average individual even today as well.
The smartest decision of the government was to hand over bulk of the amount to credit card issuers and financial institutions.
Like others, I considered this as a very bad move because this was like helping the thief and punishing the innocent.
However, the fact that bulk of the stimulus money has been provided to financial institutions has encouraged them to come up with innovative debt relief solutions.
In fact, it would be incorrect to say that lenders have come up with any solution.
Debt settlement is a concept that has been an existence for thousands of years today.
Further, America has recognized settlement as a viable option since 1980's when the financed industry was opened up and number of credit card issuers increased.
However, till date, financial institutions had a very firm control on these services.
Debt settlement was offered only to those individuals who promised to repay a significant percentage of the debt.
As on date, you can get a fifty to seventy percent discount.
Before the recession hit the economy, twenty or twenty five percent settlement was considered the maximum that any credit card issuer would do.
If you did not find this good enough, you always had the option of opting for bankruptcy and making a mess of your financial life.
That is the approach that credit card issuers took.
However, the recession hit the economy and the rest, as they say, is history.
Lenders went running to the government and this made it imperative for the same deal to be offered to borrowers as well.
The stimulus money absorbs the losses that the individual has to suffer.
This is a very big advantage.
Further, the recession is still going on and shareholders and stakeholders are not interested in high profits.
In fact, everybody is feeling guilty about precipitating the crisis and everybody is keen on doing that bit extra to help of the average borrower overcome the crisis.
When you have car payments, insurance payments, home mortgage payment and runaway credit card debt, you can utilize each and every cent of help you get.
The stimulus money has been the most direct intervention of the government in the economy till date.
You just have to make use of this to convince your creditors that you deserve a significant waiver of your debt.
Once this is done, your finances will automatically get back on track.
The smartest decision of the government was to hand over bulk of the amount to credit card issuers and financial institutions.
Like others, I considered this as a very bad move because this was like helping the thief and punishing the innocent.
However, the fact that bulk of the stimulus money has been provided to financial institutions has encouraged them to come up with innovative debt relief solutions.
In fact, it would be incorrect to say that lenders have come up with any solution.
Debt settlement is a concept that has been an existence for thousands of years today.
Further, America has recognized settlement as a viable option since 1980's when the financed industry was opened up and number of credit card issuers increased.
However, till date, financial institutions had a very firm control on these services.
Debt settlement was offered only to those individuals who promised to repay a significant percentage of the debt.
As on date, you can get a fifty to seventy percent discount.
Before the recession hit the economy, twenty or twenty five percent settlement was considered the maximum that any credit card issuer would do.
If you did not find this good enough, you always had the option of opting for bankruptcy and making a mess of your financial life.
That is the approach that credit card issuers took.
However, the recession hit the economy and the rest, as they say, is history.
Lenders went running to the government and this made it imperative for the same deal to be offered to borrowers as well.
The stimulus money absorbs the losses that the individual has to suffer.
This is a very big advantage.
Further, the recession is still going on and shareholders and stakeholders are not interested in high profits.
In fact, everybody is feeling guilty about precipitating the crisis and everybody is keen on doing that bit extra to help of the average borrower overcome the crisis.
When you have car payments, insurance payments, home mortgage payment and runaway credit card debt, you can utilize each and every cent of help you get.
The stimulus money has been the most direct intervention of the government in the economy till date.
You just have to make use of this to convince your creditors that you deserve a significant waiver of your debt.
Once this is done, your finances will automatically get back on track.