By Anya Bennett

Most Americans are burdened with debt nowadays. It is little wonder that debt relief companies have been flourishing. Some debt relief companies provide genuine debt relief while others are scams that extract money from their customers. However, most people need debt relief services to extract them out of their debts. The root of the problem lies between credit card companies who issue credit cards without much restriction and the individual. As a result most people have at least 6 to 7 credit cards, if not more. Due to so many credit cards, people find it very difficult to keep track on how much they are spending on each card. If you are amongst this majority group then you must also be suffering from debt problems. It is true that until and unless you try hard yourself, you won’t be able to get out of debt.

In current times, there have been a number of laws introduced by government that is making bankruptcy more difficult. Although it was quite common in the past to file for bankruptcy if you found out you were unable to pay your debts, this had a negative impact on the economy. Hence - government came up with such regulations which require you to spend more money and go through more paperwork in order to prove that you are incapable of paying your debts in spite of trying everything else. Now, since the government has shut one door, we have to find another to make debt relief options more viable for people.

Due to the enormous amounts of stimulus money, debt settlement has become easier and consumers can now get better deals without even negotiating too much as creditors don’t ask for much. Stimulus money is the money from government funds (Your burden) and is supplied to creditors who agree to reduce the debt of their consumers so that the consumers can afford to pay back at least some amount of debt that they owe. This measure makes negotiations more lucid and the deals are better both for consumers and creditors. Thus, you can get out of the vicious circle of debt.

Another great motivator for both you and your creditors are the tax breaks. When you use debt settlement to clear your debts, a big part of your debt is cleared, but you may expect to pay taxes for the cleared amount. This is reportedly no longer needed due to the tax relief measures that help you to clear your debts faster. Even creditors don’t need to pay any taxes, and as a result they would be more willing to settle a large amount of debt as they wouldn’t need to consider extra taxes. You should use this information to your advantage and start paying your debts.

Editors Note: Despite your views on our government or stimulus money, these options are real - If you are in debt, get help. Get your life back on track.

This guest post is a courtesy of Anya Bennett, who is a financial writer associated with Oak View Law Group. She helps people to rid their debt problems with her sound advice.

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