The world has experienced extreme economic crisis during the last couple of years. During these dark times, people were left with lesser income and in turn, incurred more debt. As of May 2010, the total amount of debts by citizens is equal to more than $200 billion! It may be sad to think that debt breathes life into everyday living but it is the reality.
Another reality is the fact that on average, there is at least 1 in 3 Americans who currently owe banks. It does not really matter if you owe the bank money because you had to swipe your card due to a medical emergency or Louis Vuitton had a clearance sale – they really would not care. No matter how sorry you are that you owe them money, credit card debt forgiveness just does not exist. Or doesn’t it?
When President Barack Obama assumed the highest seat in the government, one of the first issues that he looked at was the current financial slump that the country is in. Because of this, the Credit Card Debt Forgiveness Act of 2010 came to life.
You could almost feel the vibrating excitement of people who are neck deep in credit card debt when the idea of debt forgiveness was first introduced. However, credit card debt forgiveness does not mean that you will be instantly forgiven for your debt. No, you do not just appear all smiles to your bank and tell them that Obama has forgiven your debts because there are, of course, several requirements that you need to meet.
Credit card debt forgiveness allows anyone with more than $10,000 worth of debts to erase around 50% to 60% of the total. In order to avail of this credit debt forgiveness scheme, it would be best to have your debts analyzed first by a trusted debt settlement company. There are still some legalities that the companies need to consider before they could determine how much of your total debt would actually be erased.
Remember that in choosing a debt consolidation company, you have to find a credible one. Many companies know that a wide audience would love to know more about this credit card debt forgiveness program. In turn, they charge fees just to give you information on something that is free to obtain. Do not fall for their trap as trusted companies would not charge you anything to give information or details about this act.
Think of the Credit Card Debt Forgiveness Act of 2010 as a savior who lifts 50% of your burden off of your shoulders. Remember to use it wisely and refrain from falling into the same trap as before. Credit cards, while they are very convenient, are big temptations to fall deep into debt. If you think that you can live without them, better make sure that you have them discontinued when they are already settled. Otherwise, live within your means and only use up what you can pay for. Now that you have a way out, try your best not to go back into debt as there might not be a second chance anymore.