Credit Card Debt Settlements - Why Credit Card Debt Settlements Are Currently So Generous

Author: Eri k stump

Author: Eri k stump

The number of persons seeking settlement of credit card debt is constantly rising. There always was demand for such settlements even when the economy was in a good condition. With the recession still hurting the economy and unemployment and inflation still very high, people do not think twice about defaulting on credit card repayments to meet expenses for basic necessities. Credit card issuers have had a tough time in this recession. Many faced bankruptcy and big issuers like Citi are still receiving assistance from the Federal government. They are under tremendous pressure to post some good results to boost investor confidence. Nobody is expecting credit card firms to break even and post profits. However, shareholders expect a reduction in losses. This is possible only by getting repayments from card holders. Rather than participating in long drawn litigation proceedings, lenders are ready to offer generous waivers as long as it helps them settle the debts and post some income on their financial statements. Inflow of cash will help reassure shareholders that the company still has the potential to survive the bad times. News that more and more customers of the company are opting for bankruptcy is only going to lead to increase in criticism. However, the problem is that there are many customers who cannot repay the debts even after a waiver of 70% of the debt. Giving up in frustration is not an option for lenders today. That is the reason why they are offering even more benefits in the form of installment facility to repay the amount left after the waiver. The remaining amount can be recovered over a period of one to two years with deposit of the funds in the escrow account. The generosity by the lenders seems out of place as they are more notorious for being very ruthless in their approach. Firstly, the government is yet to release the second half of the stimulus package. Secondly, the government will not look kindly upon another round of bankruptcies. Thirdly, the lenders see no point in prolonging their transactions with borrowers who are so badly placed that they would never be in a position to repay their debts in full no matter how long the lenders wait. Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free. FreeDebtSettlementAdvice.com is one of the largest and most respected debt relief networks on the marketplace today. To find a debt settlement company through FreeDebtSettlementAdvice.com check out the following link: Free Debt Advice About the Author:

debtreliefemergency.com is a matchmaker in the debt settlement industry. They have paired up thousands of consumers up with debt settlement companies who are most likely to get consumers the best deal.

http://www.debtreliefemergency.com/

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