A Recent research suggests that an average American family uses at least 6 credit cards at the same time. Due to global economy crisis there are many people who are going through a hard time paying their outstanding amount and not able to find any other way.

In 2009 there was a special program announced by the government to help this kind of people where they were offered an economic stimulus package to minimize the citizen’s financial burden. Their were new rules implemented on credit card by the government so that the debtors could pay their debt in an easier manner. The government took the entire necessary step to provide debt relief to the debtors.

Obama’s Credit Card Debt Forgiveness Act 2010 has been the topic to talk about among the people. Anybody who is drowning in debt wants to eliminate their debt by applying this act. In reality there is no such advantage, in fact many people are mistaken to understand this act. They are totally trapped by the terms that are used in this act. Debt cannot be completely waved off. By just using our common sense we would realize that it is next to impossible for the government to erase all the outstanding debt which is used by us. The fund cannot be used by the government in this manner.

On the other hand had you been the creditor do you think you had accepted this deal? I think absolutely no, and it would be very unfair on the creditor’s behalf to wipe out the entire outstanding amount without getting a single penny. It would be 100% scam if any of the debt relief companies are using this act to be there unique selling point.

What ever the amount may be whether more or less the creditors make sure that the debtors pays it back. Negotiation with the creditors is the only way for the debtors to reduce their debts or say make themselves debt free, in case the amount is very small for instance hundred dollars the debtors can write a letter of request in order to settle their debts.

The debtors usually make a conversation with the creditors to negotiate their debt if the debt is big so that their total amount is reduced by approximately 50%. However in the most pathetic situation the debtors finally declare bankruptcy in case they are not able to pay back any single penny.

To sum up, there is no short cut for you to “delete” your credit card debt immediately.

This link will give you better idea: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre02.shtm

This entry was posted on Thursday, July 14th, 2011 at 4:13 pm and is filed under credit card debt. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

1 Comment

  1. September 15, 2011 @ 12:50 am

    Very well said. Far to many debtors fall for these “debt reduction” services only to fall further in debt prior to filing bankruptcy as the only credible solution.

    Posted by Mike Armstrong