subject: Get Debt Free In One Year - How Stimulus Money Makes Debt Settlements Attractive [print this page] Opting for debt settlement relief is the best way to deal with overwhelming debts efficiently and fast. Nowadays, life depends a lot on loans of different types. But credit cards are the primary reason which forces individuals into financially difficult situations. Due to recession there is rampant unemployment, salary cuts and lay offs. This has resulted in the over use of credit cards and wrong credit management.
In this situation, debtors are caught in a vicious cycle. They are unable to pay the debts and at the same time do not have the income to meet their expenses. They use their credit cards to pay for those expenses. The result is that very soon many individuals find themselves on the verge of bankruptcy. Debtors think that bankruptcy will free them of their debts. But bankruptcy damages an individual's credit scores almost irreparably. At the same time a number of bankrupt debtors mean that the creditors do not get their money back which might force them also to file for bankruptcy.
To avoid this kind of financial disaster, the federal government provided relief to financial institutions in the form of stimulus money. They in turn passed on this financial benefit to the debtors. They settled accounts at less than half the amount payable. And almost all debtors could become free of debt by paying it off in installments within one year. In this way the creditors were able to recover at least some of their money and the debtors were able to avoid bankruptcy. Hence stimulus money made debt settlement attractive to both the creditors and the debtors.
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