The United States, Congress has passed the American Recovery and Reinvestment Act in 2009, in order to counter the economic crisis which has gripped the country.
This act has three aims: Saving the existing jobs and creating new ones, Increase economic activities and invest in long term economic growth, and promote transparency and accountability in government spending.
Credit card debts Due to the recent recession, credit card companies have been increasing their interest rates and penalty charges.
With the cost of day to day life increasing and the unemployment rate showing an upward trend, many people are finding it hard to meet ends.
This is one of the main reasons for the increase in the defaulters.
People are missing out on payments in order to provide for the basic necessities in their lives.
Credit companies Due to the stimulus money, given by the government, the large financial settlements are willing to negotiate debt settlements with their card holders.
They are being able to extend leniency to their consumers in repaying their loans.
This stimulus money is covering up for the losses that they are making in settling the accounts.
Debt settlement companies Getting out of debt through the process of debt settlement has become a tempting offer for those struggling with debts.
But you need to be assisted by a reputable company while negotiating in order to get the best settlement offer.
The Federal trade commission recommends that a consumer must find out what services are offered by the company and the fee charged for these services.
They also suggest you to get all terms of negotiation in writing before making any payment.
Debt reduction amount If the debt amount is higher, the chances of debt settlement also get better.
This is due to the fact that the company still recovers a huge amount of money if the debt amount is high.