The US economy was on the verge of a collapse due to the current economic recession.
The major banks and other financial institutions of the country were on the verge of bankruptcy.
The major cause of this is believed to be the out of control loans that were given to the consumers to earn money through interest.
As the economic situation deteriorated, people started losing their source of income.
This situation left them with no chance to pay back the loans on time.
When the banks were unable to get their money back they went under huge debts and were on the verge of bankruptcy.
To help stabilize the economy, President Obama signed a stimulus package.
Through this package billions of dollars were released into the US economy.
The main focus of this stimulus money was the big banks and other major financial institutions.
The money helped these institutions to eliminate their debts that in turn came out with a more flexible approach towards the debt relief programs to help the common debtors.
The debt relief programs are meant to provide you debt relief.
They are fully supported by the government's stimulus money and therefore completely legal.
They provide you with a convenient way to get rid of massive debts in a respectful manner.
Let's see how the stimulus money plays its role in that.
If your unsecured debts are more than $10K then you can opt for debt negotiation to eliminate your debt.
Debt negotiation involves talking with the lender to provide you debt reduction, so that you are able to pay the debt.
Consumer has to be convinced that your financial situation does not let you pay the debt completely.
Once the lender has a reason, he can grant you debt reduction which can be as high as 60% depending on how well you negotiate.
The reduced amount is actually compensated from the stimulus money.
Another temptation for the creditor is that if you fill for bankruptcy, he/she will not be able to get a single penny back.
So Obama`s debt relief program does not only help you eliminate your debt, but it is also beneficial for the creditor and also the economic well being of the country.