Well, in actuality, the government did not pass stimulus packages that will help you get rid of your unsecured debts. There was no billion dollar grant pot sitting somewhere waiting for you to call up and ask for some of that free cash to help you reduce your debt. But indirectly, the government did give stimulus money to big banking groups like Citibank to a tune of $20 billion in 2008 and the help that Citigroup received was also extended to some other institutions in need of federal assistance.
Without this stimulus package, these financial giants were heading for extinction, which, according to the Treasury Department and Federal Reserve, “would wreak havoc on the already-crippled financial system and the U.S. economy.” And of course, all this money used to save their carcass came from our tax dollars, so it only stands to reason that we should also benefit from the same stimulus money that the credit card companies benefited from.
It is no secret that many of us are without jobs right now or may be in fear of losing our jobs, which can make us hold a tighter rein on our finances. We choose which bills are the most important to pay each month, and for most of us those are our secured debts like our mortgages and car payments. Usually our credit card bills are last on the list to get paid, and the credit card companies are well aware of this, which is why many of them are willing to work out a plan to get at least some of that money back.
These big guys have found out that getting something is better than nothing, which is the alternative when they refuse to work with us. Of course, they do not like doing it and will often use every tactic they can to try to scare you into paying or else. But some will eventually decide that it is in their best interest to pound out a deal.
Plus they also know that they received a stimulus package and the government is closely watching them and regulating many of their unfriendly tactics they have used in the past. And so they want to appear as if they are trying to work with consumers in order put a better light on themselves in the government’s eyes.
Of course, debt settlement is not without risk. If you choose to go this route, be prepared that it will probably affect your credit score. But if you are unable to pay those monthly bills anyways, a small hit on your score is better than a nasty bankruptcy, which can ruin your credit for up to 10 years.
So go ahead and make your own stimulus money package out of the one that the Credit Card Giants got. Try to get them to reduce your interest rate or remove some of your debt all together. It will take some work and power of persuasion on your part, but it can be well worth it in the end.
But if you would feel better letting a professional handle all of the negotiating, then contact a debt settlement company. This is especially important for anyone with at least $10,000 in unsecured credit card debt. Just click here for more information.
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