Monday, December 20, 2010

Debt Settlement - The Obama Debt Reduction Program - Fact Or Fiction

The Obama Debt Reduction Plan

You may have heard it on the radio. It's the program that Barack Obama has to ease our debt load. The only thing is that it's not true. Whether we hear about this program, because people wish that the government provided a program, or they just honestly believe that they do. This doesn't mean that the government has been silent. There are some things to do with regulating debt that has been put into place. This pertains to Credit Card Companies and making sure that higher fees and interest rates are not passed onto the consumer in their biggest moment of need.

What fuels this program? A 9.8% average unemployment rate across the country. This has put many US Citizens in situations where they are unable to meet their monthly obligations. The unemployment rate does not include those with wage cuts, shorter workweeks, or those in the service industry receiving tips. Every one of these factors causes financial strain that cause families and individuals looking for ways to lessen their debt burden. Individuals are not alone, financial institutions have felt the pinch of hard times and have been able to receive stimulus packages from the government. This may be the reason why people think that Obama has created a program for individuals. This is simply not the case. Here are some myths that are not true:

The Obama Government does not have a debt consolidation program

Every time you hear an ad for this on the radio, understand it is just a debt consolidation company that is using the current government to convince you they are selling a government backed program. Debt consolidation is not government activity, but is provided through pay companies.

Debt Reduction Programs

There is a growing myth, that the Obama government is offering a program that will erase your debt. This is not true and not possible. Creditors still expect their debt to be resolved. Never go into any conversations with your creditor with the attitude that you don't need to pay. Even though, you may have gotten in trouble you are still responsible for the debt you borrowed it.

In order to always have up to the date and current information be sure to check out more refutable people and publications. Finances are an every-changing market, where moves are constantly being made that change the market tomorrow. Anytime, you want to do something you should consult your financial planner first.

The best advice B-EZ Enterprises can provide to consumers having financial hardship is "do your research and use common sense." Consumers should contact creditors at the earliest signs of financial hardship and utilize a "work with your creditors approach" to resolving financial issues. Creditors, in the majority of cases will work with consumers who are proactive in seeking a resolution. The fundamental objective in any successful negotiation is both parties must come away from the negotiation feeling that they received something. Consumers should remain engaged in the process and remain persistent, remember, just because a creditor was unwilling to provide a solution today; tomorrow is another day.

Ian Stanton
Director of Marketing
B-EZ Enterprises
(480) 278-3717