The stimulus money the government has pumped into the economy has opened many debt relief options for debtors.
These options are now more easily available to customers.
This relief package was made with the aim of keeping consumers from taking out more debt in order to get rid of their older debts and to restore a respectable credit rating for the consumers.
For those who have at least ten thousand dollars in unsecured debt, this relief method is especially helpful.
These grants are designed to help out debtors with mainly credit card debts and extended debts due to illness.
Loans like mortgage and student loans are not covered.
Recently the credit card companies have been increasing the interest rates and the penalty charges on their account.
With the increase in the cost of living and unemployment, such changes by the credit card companies have had adverse effect on everyone's financial condition.
Many people are finding it difficult to pay even the minimum amount on to their accounts.
Thus, the debt relief methods have gained popularity, especially debt settlement.
The creditors are now in a position to extend this relief to any customer who has a huge amount of unsecured debt and is unable to pay it back.
If you are one of the customers who have not been making payments on your account for past few months and can arrange some money in cash, then it will be possible for you to negotiate with your creditors and get out of debt.
With so many customers filing for bankruptcy, creditors are more willing to settle the accounts for as less as 50 % of the total amount rather than lose all the money due to bankruptcy.
A debtor will have to convince his creditors of his bad financial condition in order to get the best settlement.