Most of us have credit card and use it for maximum transactions in a day.
Where credit card made our life so easy with its easy payment options, in current economic scenario this ease became venomous and ready to sting us.
The recession in economy resulted in job cuts, steadily declined the purchasing power of people, and depressed people to an extent of health problems.
All this are cumulative reasons of inability to pay credit card debt.
The financial planning going for a complete toss left people with little options, making a full payment of the credit card debt became a remote possibility.
To some who were capable of making the payment ended up with bankruptcy which gave way to larger trouble.
It would be a potential threat to the government to take care of so many people declared bankrupt; these people will not be able to apply for any loan for years.
Not paying any credit card debt is also a bad choice, as the amount keeps on building making the situation no better.
That left us with adopting a midway, negotiating on the debt settlement.
The huge influx of money as a part of federal stimulus package helped debt relief network, debt settlement programs to advise people on payment options.
This in fact would be an opportunity for those under debt to settle it on a reduced amount than paying off the whole debt.
60 percent waiver on debt settlement is worth appreciation both by the borrowers and the lenders.