The New Tax Benefits
The financial institutions asked the government to change accounting rules so that writing down credit card losses is advantageous to the banks. When President Obama signed made these changes to the tax codes to help banks and financial institutions, he was not aware that he was creating a scenario to help consumers to rid themselves of credit card debt.
The new tax codes offer banks and lenders to write off bad debt and get substantial tax relief for doing so. This was enacted to allow the banks to write off these debts without suffering major loses. The financial institutions, in an effort to write off their bad debt while these tax breaks are available and also to help them to collect huge outstanding defaulted credit card debt, the credit card companies have started to negotiate credit card debt through a process called Debt Settlement.
What the Tax Breaks do for Consumer Debt
Consumers can negotiate debt reduction as much as 50-60%. Consumer Debt Settlement is now the accepted process for consumers to negotiate with their creditors. The new laws enacted in 2010, offer better protections to the consumer, so that they can retain the services of a profession Debt Settlement Company.
As the economy continues to cause worries and credit card debt and defaults continue to rise, the financial institutions are trying harder and harder to collect as much money as they can and to take advantage of all government programs available. With a constant eye on bankruptcy filings, the banks want to negotiate settlements as they lose everything in a bankruptcy and suffer more expenses.
This in mind, the banks are flexible and open to any solutions that is plausible. The best results for a Debt Settlement is to have a complete plan and breakdown. Also the more money you can pay immediately helps things along.
Act fast before things change
While these tax benefits and other government programs are available, such as the stimulus act and the new 2010 Credit Card Laws and TARP it is best to find a professional Debt Settlement Company and take advantage of these benefits.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.
By: Sankalan Baidya
Free Debt Help : http://www.freedebtreductionhelp.com/
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