The common people have at long last found themselves on equal terms with the big corporate houses. Year after year, both the common people and the big corporate piled up debt in millions. The regular citizen piled up credit card debt. However, each time, it was the big business corporations that were rescued from the debt quicksand by varieties of bail out programs by the government while the common citizens had to fend for themselves to rescue themselves from the debt anyhow. Housing bailouts and false hopes is one of the authority sites on this topic.
The mounting debt ensured that many people had to sell off their properties and many went bankrupt. However, of late, multiple initiatives have been undertaken to rescue the regular citizen from the debt burden through credit card debt relief bailout programs. These programs have significantly alleviated the debt burden of the people.
Let us take a look at the various types of credit card debt relief bailout programs.
Debt Settlement: This is a program that reduces the overall credit card debt burden of the debtor significantly. Statistics say that the burden could be reduced by as much as 50%. The debtor agrees to pay the remaining debt amount and the creditor on their part settles the transaction totally.
The entire process goes like this: the debtor who is unable to pay back the full debt amount to the creditor approaches a debt settlement firm to settle the debt; the debt settlement company does an evaluation of the total debt and the amount that they can negotiate; the firm then approaches the creditor with a proposal to scale down the debt and negotiates with the creditor.
The creditor and the debtor arrive at a mutually agreed amount that the debtor will pay. The creditor in return issues a statement that the debt has been settled. The merit of this approach is that the creditor recovers at least part of the loan while the debtor is able to do away with the debt totally. The entire activity is done without taking another loan.
Debt Consolidation: Debt Consolidation is another popular way of credit card bailout. This method enables the debtor to obtain another loan in order to pay out the existing loans. Obviously the new loan is taken at a relatively lower rate of interest and softer terms and conditions. Later, the debtor finds it relatively easier to pay off the new loan.
Obviously, the main difference, still, between the regular customers and the big corporate businesses is that for the former, credit card debt relief bailout must be self initiated while for the latter, it is government initiated. One flipside to the individual customer bailout program is that the creditor may or may not agree to such settlements.