The new federal law of 2010 implemented by President Obama is a welcome positive change from the earlier laws. The policies and new regulations are totally in favor of the consumers and the law is being treated as People friendly. It will have a positive effect on the debt repayment as the consumers will not have to deal with the ever increasing and fluctuating interest rates as there will be a limitation on that and also new government debt relief programs have been introduced for people to help eliminate the debt.
Obama’s new bill has brought in some changes in the credit laws like people filing for Bankruptcy will have to first go for the relief programs such as Debt settlement and Credit counseling. It has been made mandatory to utilize theses services in order to repay your debt amount and also with the motive of reducing bankruptcy cases.
A help relief fund has also been raised by the US government called stimulus money which will be available for those who have a debt amount of over b$10, 000. With the stricter credit laws and limitations on the interest rate hikes credit card companies will also adopt a lenient attitude towards the debtors. The creditors will readily agree for the Negotiation or settlement with the consumers as this has been made necessary by the government and non- compliance to the rules can land them in trouble.
The easy negotiation deals with the creditors will help the debtors in paying back their debt amount easily as they can get an easy waiver off the outstanding balance which can be up till 50 – 60%. A huge reduction in the total amount and easy monthly installments can certainly help the customers to make the debt repayment easier for them.
Debt settlement is a legitimate alternative to filing bankruptcy. If consumers are experiencing a financial hardship and have at least $10k in unsecured debt then debt settlement can be a legitimate way to eliminate up to 70% of that balance.