President Obama’s credit card debt forgiveness Act in 2010 creates a positive stir among debt stricken Americas who are grappling with the mounting debt on their unpaid credit card. Some days ago a report stated that people in Atlanta were leading the country in credit card debt. They are forced to pay their utility bills with credit card. However, it is not with Atlanta alone, the whole country is under huge public debt which has spread like epidemic. In this circumstance, Obama’s announcement of debt forgiveness is a great help for struggling Americans to overcome this economic hard times.
Federal government’s special economic stimulus package is greatly supported by the newly issued credit card policies of the Federal Reserve Bank. This combined effort is likely to stabilise the debt pressure mounted on people and help them to get through the fluctuating economic condition in a better way. Wage cuts and job lost has dealt huge blow to the Americas. Therefore, to cope up with the reduced income, they are more and more depending on the credit card. So naturally they are prone to pile up huge credit card debt without even think of credit card debt consolidation.
The credit card companies are averse to buckle down interest rate to make the payment affordable for the consumers. Their astronomic interest charge makes it harder for a debtor to get out of the credit hole. Besides, due to losing their job people are now trying hard to make only the minimum payment which covers only 3% to his outstanding credit. This payment is going to cover only the interest. The principle amount is remaining untouched.
Obama’s credit card debt forgiveness act proposes to exempt 50% due credit of a debtor who has more than 10 thousand dollars in credit card debt. However, debt will not be forgiven in whole amount. The motive of this program is to help people have a better handle on their debt issues and expel the frustration from their mind.
This federal debt relief program also holds some eligibility criteria that one should qualify to obtain this special advantage. You must consult a debt consolidation company to get assured that you will be eligible to grant the benefit of this program. While selecting a debt consolidation company, you need to come at a reputed one so that you don’t get cheated by it.