Credit card was a very good invention because it helps you at the right time when you don't have any money left in your pocket to pay the bills.
It can be a very effective tool if used carefully.
But many people don't bother about the circumstances which result in debts.
Credit card can make you helpless if you don't have control over your spending habits.
Companies get back their money with high interest rates and other hidden fees.
With the interest, debt keeps on increasing but sometime, interest rate also increase itself making it a lot more difficult to control the situation within months.
After a few months, you become a part of the large number of people who are suffering from credit card debts.
Many people don't want to get into more troubles by settling the money they have to give back.
They usually knock at door of bankruptcy court.
When new FTC laws were not implemented, courts have no other choice than to accept their petitions.
This ratio of bankruptcy cases ruined the economy which is still healing from the final blow of the last year's recession.
The Government took it seriously and made new laws to protect both the debtor from ruining their future and credit card companies.
These circumstance forced companies to settle down debts of many people otherwise, no one can stop them from using bad options like bankruptcy.
In case of bankruptcy, they were not going to get anything back.
So, credit card companies also showed some relaxation in their behavior and accepted deals with open hands.
The Government is now encouraging people to settle their loans through legal process of settlement.
They know that if debts will not be resolved then the U.
S economy will not survive financially.
It is not possible through any means.
It will not be good to pay avoid the debts because it will create bad habits in the society.
So government has provided the laws to help people in different ways so that they can get their issues solved by helping themselves.
The New laws have made bankruptcy almost impossible.
Therefore, settlement process is easier and its usage is always recommended.