Credit Card Debt Negotiation - Why Lenders Will Offer More Debt Settlement Deals In 2011

Feb. 27, 2011 - PRLog -- Credit card debt negotiations have reached a new level of demand because of the restrictions on the bankruptcy filing. The consumers are now more inclined towards settlement negotiation programs to get rid of their unsecured liabilities. But, why are the lenders agreeing to more debt settlement deals in 2011? What is their interest? The lenders do have interest in debt settlement deals. The interests are mentioned below and they will explain why the lenders will be offering more settlement deals in 2011.

   * The lenders have the back up of government aid in form of stimulus cash and creditors' tax breaks. The lenders who offer more settlement deals will be allowed to use the stimulus cash to cover their organizational expenses like managerial costs, the salary of the staff and others. The lenders will however, will not be able to use the money for business. That is, the lenders cannot use the money for the purpose of lending. Also, the lenders who offer settlement deals will have to pay less taxes to the government in order to make up for the loss of interest income. It is because of these reasons that the lenders will be offering more settlement cases in the year 2011.
   * The lenders know that the number of consumers facing debt troubles is overwhelming and they want to get rid of their unsecured loans. The lenders know that if they do not offer more settlement deals, the consumers will be forced to file for bankruptcy. If the consumers file for bankruptcy, the lender will be losing billions of dollars and this will make them financially weak. In fact, the lenders will fail to pay their corporate liabilities and they will become defaulters and eventually over time, they will become bankrupt. The lenders do not want this and hence, they will be offering more debt settlement filings in 2011.

With the new FTC laws recently passed, debt settlement is a legitimate alternative to filing bankruptcy. Creditors are ready to negotiate and now you won't have to pay a fee unless your debts actually settle.

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