If you’ve watched in amazement as the United States Government handed billions of dollars over to big businesses, such as the large financial institutions, you may have been so outraged over this that you failed to realize how you can benefit from these funds as well. More and more Americans are slowly getting the whole big picture, however.
This money actually makes it easier for anyone who owes a large amount of credit card debt – or even a small amount for that matter – to finally get out of debt. These funds make this possible because it gives credit card companies the opportunity to accept debt settlements, especially when they see that the consumers are having a difficult time even making minimum payments.
Any type of business must look to the future and predict what will happen if they are going to continue to stay in business and be successful. When the credit card companies look into the future, with the current economic conditions that we have, what they see is more and more consumers able to pay their debts, which in turn will cause these credit card companies additional financial difficulties as well.
Debt settlements not only offer you the opportunity to get out of debt, but also offer the credit card companies to collect at least some of the debt that is owed to them, instead of collecting nothing at all in the near future. The federal stimulus money makes it all possible.
When the credit card companies settle your debt, you pay a certain percentage of that debt, and then the credit card companies forgive the rest of the debt. Because they have stimulus money, this is possible – they can essentially use that money to forgive that portion of your debt. Again, they could hold out for the full amount, and continue operating with the stimulus money for a while – but in the end, the stimulus money will be gone, there won’t be any additional stimulus funds to tap into, and because of the economy, you won’t be able to pay any part of your debt – and this is why they are willing to settle your debts today.