subject: Credit Card Debt Reduction - Why Are Lenders Cooperating To Offer Debt Relief? [print this page] The primary reason why more and more lenders are prepared to offer generous debt relief is the fact that more than eight million people have lost their jobs due to the recession. There's no way our economy can regenerate so many jobs very quickly. This means that a large number of persons shall remain unemployed for some more time. Not all of them have huge savings. It does not take a rocket scientist to anticipate that seeking complete repayments shall only lead to record number of bankruptcies.
Lenders have learned this truth the hard way. They tried to sustain their aggressive recovery tactics in the initial phase of the recession. The stimulus package had yet not been announced. The consequence was that borrower's declared bankruptcy in millions. Lenders were stuck in a deep trap of toxic assets on their balance sheet and their other assets declaring bankruptcy in record numbers.
The government not only offered a stimulus package but introduced numerous legislative measures to regulate credit card issuers. The changed legal position means that credit card borrowers, even those with delinquent balances, will be in a superior position. Credit card issuers hate to be caught in such a position. Hence, numerous innovative relief measures are being offered to get rid of irregular borrower accounts even at a loss.
Debt relief measures will continue even though the economy has started recovering. Lenders offered money to practically any and every person who earned an income. Today, this urge has passed. Today, lenders are evaluating each and every customer before finalizing their application for a credit card. Borrowers are analyzed from the point of view of risk and repayment capacity. Earlier, card issuers encouraged borrowers to max out their accounts. Today, issuers are taking preemptive action even before the individual defaults. Hence, you can be rest assured that debt relief is not ending anytime in a hurry.
All in all, there have never been more generous debt relief options available in the market as are available today. The onus is upon you to take advantage of the options to get the best possible relief.
If you are over $10,000 in unsecured debt it would be wise to utilize a debt relief network instead of going directly to a debt settlement company. Using a debt relief network guarantees that the debt settlement company you choose has been certified and has established success in negotiating settlements. They are free to use and a good starting point to begin your debt relief process.
