When the financial institutions started issuing credit cards, many people were attracted towards those plastic money knowing that at that time it was very easy to go for shopping if they did not have cash in their pocket. This was a misconception created by the people who thought that they can easily pay back the credit card debts by installments or will eliminate them by paying minimum amounts.
In this time of recession, when the income of people is very low, they are not even able to buy the basic things they needed for their house because of the high prices. People are unable to pay back their loans as the incomes are low. People do not give priority to their debts as they think they will pay it last, but as soon as they need to pay it, they realize that they have no money and the amount they owe cannot be covered in any way.
When the credit card debt becomes massive due to such activity on not paying back properly, they finally search for debt solutions. People always want to know the best debt relief solutions for the credit card debt. In my opinion, the best solution is a debt settlement program. The debt settlement programs were introduced to avoid bankruptcy due to massive attachment of credit card debts.
With the increase of bankruptcy the government and financial institutions mutually introduced the process of negotiation. People can get bailout of their debts by negotiation with the financial institutions and with the help of a legitimate debt settlement company. The process is simple and starts when you stop paying back against credit card debts. Your debt settlement company will contact your financial institution to realize your financial position. The managements of institutions have already decided to give relief to the consumer and they accept the deals made by the consumers. This is the policy of managements of financial institutions that they do not let the customer go for bankruptcy and they accept what a consumer wants to give.
The government is also supporting debt settlement programs, as they realize that this is the best way to boost the economy of the country and that is why the stimulus cash was introduced.