When President Obama began making statements about his stimulus package, it came as a relief to many consumers, small business owners, and corporations. Americans then became infuriated to learn that taxpayer funded stimulus dollars given to corporations were actually used to fund million dollar bonuses to executives. What is rarely discussed is that those same stimulus dollars have improved the position of consumers in terms of debt settlement. In actuality, it can easily be concluded that the president’s stimulus package has improved the climate for debt settlements.It is a fact that debt settlements did not just become possible after the stimulus plan was enacted. Much to the chagrin of most consumers, the financial giants were not as open to working with consumers to forge these agreements, often rejecting settlement or merely accepting reductions that were 30% on average. For a lot of people with unsecured debt, a 30% reduction seemed insulting and did little to nothing to offer a true respite from their debt problems.
Now since the stimulus does have been distributed, and with the struggling economy, more people are able to obtain debt settlements, and current the debt settlements negotiated are for an average of 50% or greater. So, what has made these large financial corporations more ‘consumer friendly’ in terms of debt settlement? The answer is readily clear – if they receive some portion of their outstanding debt from you, they can make up for the loss income using stimulus money.In addition, as a result of the backlash from the stimulus dollars funding executive bonuses, those companies that take stimulus money are now required to demonstrate how those dollars are being used. This further allows consumers to use debt settlement firms to reduce debts owed to those companies. As a result of the backlash, those companies have now increased the amounts of debt they are willing to reduce. While the average has increased from 30% to 50%, it is not uncommon for financial institutions to reduce the amount of owed debts by as much as 80%.However, the generous mood of creditors is not here to stay. Once the economy shows signs of recovery, the financial corporations will return to their old tendencies of either outright rejecting debt settlements or agreeing only to minimal reductions of debt. Therefore, if you currently hold unsecured debt, it is time to take action to start working on debt settlements.
If you are looking to hire a debt settlement company for debt negotiation to eliminate your debt, listen to the following recommendation. Instead of trying to find the right debt settlement company on your own, find a debt relief network that is associated with multiple reputable debt companies. To qualify for the debt relief network, the debt settlement companies have to demonstrate a history of effectively reducing and eradicating debt. They also have to submit to and pass an ethical standards examination. By using a debt relief network, you are assured that to be matched with a reputable and trustworthy debt settlement company.