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Debt Destroy

Obama Debt Settlement Program

The struggle with American debt continues. Bankruptcy continues to become a more frequently used alternative than ever before.  For some, bankruptcy is an easier option than struggling through the mounting bills that cannot be paid.  Reports show that the average American has more than one credit card regardless of their ability to pay them. 

The reality is that increase in declarations of bankruptcy effects financial lending institutions as well as individuals. Bankruptcy puts everyone involved in a difficult economic situation.  The more people that file bankruptcy, the more financial loss for lenders.  This is a difficult and dangerous cycle that can potentially cause further damage to the economy.   

The Obama administration in response to the circumstances surrounding ever-increasing American debt developed a stimulus package to assist lenders in recovering losses that resulted from bankruptcy.  This stimulus package, although provided directly to the lenders, indirectly benefits the borrowers.  The assistance provided to financial institutions such as banks allowed them to come up with creative settlement options for consumers struggling with debt.   

There is a misconception that the government will provide money to individuals with the ultimate goal of eliminating personal debt.  The government has developed and directed programs that assist individuals however there is no plan for a government debt settlement program that will eliminate or alleviate debt. The government has provided incentives that indirectly assist consumers who have debt with options other than bankruptcy.   

Declaring bankruptcy has a long term impact on financial institutions and consumers. Avoiding bankruptcy when possible is the best option. When a person files bankruptcy their credit suffers.  It can take years to recover from the sting of bankruptcy.  Lending institutions take a loss when the consumer is unable to pay the debts.  It is in the best interest of all parties to work out a reasonable settlement arrangement.  The stimulus assistance provided through the Obama debt settlement programs allowed banks to recover some of their losses and provide more attractive options for settlement arrangements to borrowers.     

The legislation that made the debt settlement program possible was designed and implemented during the early days of the Obama administration. The legislation was sparked by the government but should not be considered a government debt settlement program.  The specific goal of the legislation was to prevent bankruptcy by providing banks with incentives to arrange manageable debt settlements with borrowers who are struggling with debt.  

This stimulus program provides consumers with options other than bankruptcy.  This package was designed to indirectly stimulate the economy and create a positive impact on the lender borrower relationship.   There are many different types of debt relief programs ready and able to assist with debt settlement.  Given that new legislations proves a more comfortable environment in which to negotiate debt settlement, now is a good time to shop around for the program that is best for you. Reducing the number of bankruptcy cases is a benefit for everyone. 


Kairon - The Obama administration is making it easier for individuals to get out of debt by passing recent federal stimulus packages. Much of this money was given to large financial institutions where many credit lines started. These creditors are using the money to offset the losses they take during such settlements. This means creditors are more likely to offer large debt settlement options.
K (Guest) - Are you a member of The Association of Settlement Companies (TASC) or The United States Organization for Bankruptcy Alternatives (USOBA)?
miheal (Guest) - Do you have Obomas premission to use his picture.  NO.       What bill is he signing??   Not wht you say he is.