The recession in America has caused problems for many American consumers and businesses.
Since many Americans lost their jobs, they were unable to pay their bills, including credit card bills.
Creditors were not getting any of the money they were owed because the consumers who owed that money just didn't have anything to pay; this is still a common scenario today.
President Obama and the federal government noticed just how the bad economy was impacting consumer debt.
They have developed a number of financial packages designed to pump money into the economy.
Banks and other financial lenders who were about to go broke were given the opportunity to stay afloat; they were given the opportunity to cover losses.
Now, your debt is not going to be completely erased thanks to the federal government.
What you are given is the chance to settle for less than the total amount you owe.
See, credit card companies are able to write off some of this money and this gives them more flexibility.
Instead of demanding the total amount owed, they are willing to settle for less.
Sometimes, this lesser amount can be 50, 60 or even 70 percent.
Since now is the best time to settle your debt and eliminate some of the unsecured debt you owe, it is time to take action.
Your best bet is to go with a debt consolidation company that operates as part of a debt relief network.
In order to be in these networks, companies must undergo different tests and careful examinations; they must have a proven successful track record.
Since there are scams that surround debt settlement, a debt relief network can help give you comfort, peace of mind, and protection.