The Obama Debt Relief Program Provides Help To Consumers Buried In Credit Card Debt
Are you in debt and finding it increasingly hard to settle your financial responsibilities? You are not alone. All over the country, more and more people are getting buried in debt. The national debt and economic crisis in general and the rising cost of basic commodities and services in particular are not helping the situation. Add to that the fact that unscrupulous lenders continue giving people credit offers they can’t refuse, which only prolongs the people’s agony. These lending firms cash in on the financial woes of others.
Some sectors are saying the crisis is over, but there actually no clear signs yet that all is well again in the country. In fact, effects of the recession, the worst since the Great Depression in 1929 to 1930, will continue to be felt in years to come. What the public can do now is observe practices that can minimize the impact of the crisis. Learning about the root cause of the problem can be just a good start.
Factors That Contribute To The Problem
The great crisis started in 2007 and spread like wildfire until it engulfed the entire country in 2009, the economy was in shambles, and in a domino effect crushed other smaller economies in the world. While the problem can be considered as contained now, there’s no telling yet when its effects will stopped being felt by the people.
The second factor is excessive regulation and restriction of land use, which resulted in prices jacking up in the market. Boundaries of urban growth, moratorium on construction and the development restrictions on large properties resulted in prices of houses rising to levels never experienced before. Mortgages had to increase as a consequence.
Millions of Americans found themselves buried neck deep in debt, as companies were closing one by one. And they borrowed even more in order to survive.
A Fatal Combination
The combination of these two factors proved fatal to the country’s economy. In the meantime, the people and the government didn’t know what hit them until it was too late. The national debt skyrocketed making it hard for the government to continue fulfilling its obligations to the country.
However, there are legitimate debt relief programs available to the financially burdened who want debt help now. They can opt for a debt settlement, debt negotiation, debt consolidation, repayment plans or other similar opportunities that various legitimate financial companies and institutions offer.
Obama Debt Relief Program
President Barack Obama’s debt relief act is an initiative of the federal government to eliminate a borrower’s debt by fifty percent to seventy percent. The act is not total or complete debt forgiveness but only partial. The government will offer debt relief packages for people, depending on the nature and amount of their debts.
The Obama debt relief act, or sometimes called the Obama credit relief act, is a giant effort of the Obama administration to help a person get himself rid of his debts. Because of the Obama credit program, billions of dollars are being pumped into the economy. The move aims to resuscitate the country’s economy through the settlement of debts.
The Amount Of The Obama Debt Relief
A total of US$787 billion was added into the country’s coffers by President Obama shortly after he assumed office in 2009.
The program created confusion as to what to call it. Some called it Obama credit relief program, others called it The Obama Debt Stimulus Program, still others called it Obama debt relief act. Most commonly, though, the program was called the Obama Debt Relief Program. But however anyone wants to call it, the fact was that the President made available to the country almost US$787 to save its ailing economy and rescue the people from their debts.
Debt Relief Grants Of The Obama Administration
Using The American Recovery Act or Stimulus Act of 2009 as basis, President Obama provides the country’s citizens a government relief program that allows them to settle their debts and move on with their lives.
Giving individuals tax rebates to debtors and companies is the ultimate goal of the Obama credit plan. The same rebate in taxes is also given to creditor, against the amount that they have to collect from their debtors. As a result, many debtors want to avail themselves of the program and start negotiating with their debtors for possible ways to settle their debts. Both creditors and debtors benefit from the debt relief act of the Obama administration.
The country’s consumers are eventually the ones who benefit the most from the Obama debt plan. The consumers, who are the debtors themselves, have been wanting to go for debt settlements with their creditors but just couldn’t find a way how. Before Obama assumed office, and when the crisis was at its peak, there was no system in place that would make it possible for the creditors and debtors to sit down and talk things over.
Forget About Filing For Bankruptcy
With the debt plan, debtors can choose a not-for-profit debt settlement firm where they can rid themselves of their debts by about fifty percent to seventy percent. That’s a huge relief! People who had started to think about filing bankruptcy decided against it and availed themselves of the Obama package. The US economy was saved from the negative impact of bankruptcy.