For Those in Debt – Will the Government’s Tax Rebate Help?

Congress passed the “economic stimulus” package last week that includes a tax rebate for middle and lower income Americans filing 2007 taxes. This rebate is designed to “stimulate” the sluggish economy. The White House says that they hope people will spend their rebate checks and thus give the economy a needed shot in the arm. Sounds good...if the problem were that simple! The truth is - many people aren’t spending now because they can no longer afford to! With so many Americans struggling to pay off their credit card debt, dealing with rising property taxes in many areas, and smack dab in the middle of the sub-prime mortgage meltdown and lower home values, they are literally maxed out when it comes to discretionary spending. So does it make sense to hope that many of the people who can least afford to spend more money will use the rebate to buy more stuff? In addition, will this rebate really help these people?

How the Tax Rebate Works
The rebates are designed for single people who make $75,000 or less and married couples who make $150,000 or less. (Those who make more will see little or no rebate due to the rebate phase-out for incomes over these thresholds.) Too many of these consumers in the lower income brackets are barely able to afford the basics. Those who have lost jobs or are struggling with medical or financial hardships have already tapped in to their home’s equity and now don’t have enough to pay their bills each month. Many have to make the hard choice of either paying their mortgage to try to hold on to their homes, or make their credit card payments so they can continue to charge the basics of food, gas for the car and medical prescriptions. If you doubt the seriousness of the problem, read on.

How Bad is the Credit Card Debt Problem?
According to the Better Business Bureau, consumer credit card debt is a staggering $915 billion. This is a reported 7% increase, annually, based on 2007 3rd quarter data, as compared to an average increase of only 2% per year for the previous 6 years. In an effort to keep their heads above water, many are paying high over-the-limit penalties (as much as 35%) because they have charged above their credit card limits in an effort to keep heat on in their homes and gas in their cars. In addition, the credit card default rate (delinquent 60 days or in default) has risen to 7.6%. In spite of all this, the credit card offers keep coming in the mail!

It seems to me that our government should be doing everything it can to encourage people to solve their debt problems and begin living within their financial means, but then again, look at the billions of dollars of debt our country’s Administration has wracked up!

Is There a Solution to Your Debt Problem?
If any of what I am describing feels all too familiar, do yourself a favor and use your tax rebate to get yourself out of debt and back on track. If you have significant debt and the rebate won’t even put a dent in your problem, then don’t wait for your rebate check. You need a true debt solution now! I strongly urge you to consider debt mediation. It is the only solution that can get you out of debt in months instead of years and for less than what you currently owe.

How Debt Mediation Can Help
Debt Mediation is a program in which a qualified settlement or mediation company works for you with your creditors, to “negotiate” a reduction in your unsecured debt. Under this type of program, each of your creditors agrees to accept a portion of what you owe them, in lump sum payouts, as payment in full, and marks the debt “zero balance”, which is very important and positive for your credit report. You’ll get out of debt for less than what you owe and in a fraction of the time it would take to pay off the debt just making the minimum monthly payments. Because they are settling hundreds of thousands of dollars of debt for hundreds of clients, they have relationships built over time and leverage with your creditors that you don’t have. If you’re not clear as to why this approach is better than debt consolidation or consumer credit counseling, then click here to read my earlier blog on the advantages of mediation.

Who should you contact? – There is one company than stands out because of their excellent track record (quality service and results) and their unique approach. I recommend that you start with this company for a free debt consultation.

The program is Credit Card Relief™.

Nation’s Only Attorney-Driven Approach - Their program is unique in that Credit Card Relief uses a network of participating program attorneys, local to their clients, and provides a free initial consultation to determine if debt mediation is the best solution. Once enrolled, your creditors are contacted and told that you now have representation in settling your debt. You now have a professional working for you. That’s where your relief starts. The debt is then mediated by a nationally recognized debtor mediation law firm.

Great Track Record - Credit Card Relief has years of experience, settling over $110,000,000 (one-hundred and ten million) of debt for thousands of clients.

Operates in 46 states.

Low Monthly Payment – Credit Card Relief can cut your monthly payment by as much as 50%. They also have reasonable fees that you can live with.

Your Money is Safe - In addition, each Credit Card Relief client is part of a unique Enrolled Member Trust, through which all their funds are deposited into a totally insured, risk-free trust account with a national bank. No money leaves your account without your permission.

Satisfied Clients - Credit Card Relief provides superior service, with on-going support throughout the duration of the program, through their full-time Client Care and Compliance departments. They have Zero open complaints with the more than 400 Better Business Bureaus (BBB’s) and the over 16,000 local, state, and federal regulatory agencies monitoring the industry. You can obtain a free debt consultation from Credit Card Relief™ by clicking here.

Or call (866) 960-5454

They can help you determine the best solution for getting you free of debt.

Don’t Delay! Don’t let embarrassment, stigma, or the sense that negotiating your way out is not the moral way to get out of debt. The Credit Card Industry is one of the most profitable industries in the United States with annual earnings around $30 Billion. Citibank alone earns more profit than both Wal-Mart and Microsoft. Yet this industry has more complaints filed against it than any other industry in the U.S. Getting debt free and starting a financial plan to build wealth instead of debt is one of the best things you can do for yourself and your family.