The adverse effects of the economic slowdown can be seen in the increasing number of credit card defaulters. Government has poured in huge amount of stimulus money into the economy to help out people as well as the financial institutions to get out of the financial crisis. With an increase in the number of customers defaulting on their account the credit card companies were getting concerned. The threat of many of the customers filing for bankruptcy had become very real. Such concerns have driven the credit card companies and the other financial institutions to promote debt settlement amongst their defaulting customers. This has been done in order to retrieve at least some part of their money.
The bailout money given by the Obama administration in a bid to revive the bigger financial institution has reached even the common man. People who are unable to repay their loans are being able to go for the debt relief programs. The criterion that you need to fulfill in order to avail the debt settlement program is that you should have a minimum of ten thousand dollars as your unsecured debt.
You can go ahead with the negotiation on your own or you can hire a debt settlement company to negotiate on your behalf. Initially you will need to convince your credit card company of your current financial condition. This is also the hardest part. Once the creditors have agreed that your financial condition qualifies you for debt settlement program, you will stop receiving the call from the collection agency. Then you can open up an account to save up a certain amount of money within a given period of time. Once you have the money you can negotiate a settlement amount with your creditors. It is possible to get up to 60 % rebate on your credit card debts.