The current economic trend has put many people in financial trouble.
The economic slow down has lowered the income of many families.
Many people lost jobs where as there are many who faced pay cuts due to the cost cutting measure of the organisations.
As the income level reduced the cost which people were facing did not go down significantly.
People today are finding trouble to run their day to day expenses.
People are force to take credit because money is in short supply.
There was an equal bad impact of recession on the profits of credit giving companies.
The delinquency they were facing rose so high that they were forced to step up their collection procedure which did not give much result just added on to the existing cost of the organisations.
Recession forced many organisations to close their operations due to the high losses they were booking.
Due to sub prime lending many companies were eroded of their working capital.
There were many on the verge of filling a bankruptcy when the government decided to intervene and bring some stability in the sinking economic condition.
There was an $800 billion bailout package given to the institution heads to write off losses and further run their business.
This had a mixed reaction from the American crowd.
While the ones who were running business and those who were working for such businesses welcomed the thought the general Americans felt left out in their misery of debt.
The Government had given the money with the directive that they would help their customer base in settling debts.
The current condition was not conducive for people to pay high rate and full debt for settlement as people did not have money due to various economic reasons.
They gave the customers settlement at rates which they would have never got under the ordinary conditions.
Today if the customers can afford it they should go ahead and take advantage of the situation and settle the low rates available today.
These rates will not be available forever.
It will be effective only till the time the bailout package is flowing through the economy.
This is an opportunity which should be taken advantage of.