Take Advantage of Government Bailout Money

Did you know that the bailout funds from the Economic Stimulus Package (our tax dollars) were given to Banks and Creditors at zero percent interest? And did you know they turned around and lent that money out at 4% interest and are making money on our tax dollars? Wasn’t the purpose of the Economic Stimulus Package to “stimulate the economy?” The banks and creditors could have used that money in countless ways to to do just that. Perhaps they could have reduce interest rates and principal amounts owed on homes and credit cards so people could afford to pay them. If people could afford to pay their creditors, creditors wouldn’t be in debt and need a bail out. More money in our pockets would also mean consumers could start spending money again which, stimulates the economy. The sad reality is, instead of stimulating the economy, banks took the money and stimulated their wallets.
In addition, recent changes in Credit Card legislation were put into place to protect the consumer. That’s a good thing. The problem is, the Credit Card Industry as a whole now faces an estimated 11 Billion dollar a year loss in profits. In an attempt to combat their projected law of agency singapore losses, creditors raised interest rates, and cut spending limits regardless of how good or bad a borrower you are. For many people this made the monthly payments even more un-affordable, and the hope of one day paying off the debt they owe, an impossibility.
So where is the upside in all this? Many of us are struggling with credit card debt, and since we didn’t receive any help from the government, or the credit card companies, what do we do?
There is an option that not many people know about, and Banks and Creditors refuse to talk about. That is the option to settle your debt for less than you owe. The Fact is, Banks and Credit Card Companies WILL SETTLE for less than you owe them, regardless of what they tell you. And now they are getting pressure from the government to settle as well for the same reason stated above. In order for the economic stimulus package to stimulate the economy, people have to buy new things, not just pay back money and interest that has already been paid back by the government. Think about this, even if you don’t pay back a cent of the money you owe a creditor, they will recover the majority of the debt through the stimulus funds, charge off’s, tax breaks, and by selling the debt to collection agencies.
There are pro’s and con’s to Debt Settlement as with any debt relief program, or even borrowing and paying off debt “as usual” for that matter. There are also good and bad companies out there to watch out for. You want to deal with a company that protects YOU the consumer, not just themselves, and of course watch out for the scams. A good way to start is to get a free financial analysis without spending how to speak to a judge without a lawyer any money up front to see what your best course of action is. Sometimes Bankruptcy is the only option, but should always be regarded as such, a last resort. Talk to someone who does not only have interest in one avenue of debt relief. i.e. If you speak to an attorney who only offers Chapter 13 Bankruptcy, chances are they are going to tell you chapter 13 bankruptcy is your best choice or only option.

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