Obama debt relief act (there has been quite a lot of confusion over the name) is a Herculean effort made by the Obama administration to help you get rid of debts. As we all know, the onset of economic recession in the early December 2007 spread its tentacles and engulfed the US economy crushing it ruthlessly in the year 2009. Consequently, the world witnessed a whirlpool of economic meltdown and the US saw an economic crisis, far more disastrous than that of the Great Depression of 1929 - 30.
Millions of job cuts and a slump in the economy pushed people into debts. Thanks to the Obama debt relief initiative that pumped billions of dollars into the US economy in an attempt to encourage debt settlement and strengthen the US economy.
With the hope of clearing 60% to 70% of your debts, President Barack Obama, introduced a whooping sum of nearly US$787 billion, after he was appointed as the US president in January 2009. There has been a lot of confusion about what is the exact name of the program. Some call it as, "President Obama's credit card debt relief plan" or "Obama Debt Relief Act" or "National Debt Stimulus Plans" or the "Economic Stimulus Act". Although, there is no common consensus on the name of the program, it's a fact that Obama administration has put nearly US$787 into the US economy to help its citizens get rid of debts. More information about Obama deb relief act has been discussed further in this article.
Obama Debt Relief Grants
President Obama, on the basis of The American Recovery Act or Stimulus Act of 2009, offered one of the most suitable government relief debt programs to its citizens for paying back their debts and improve their situation. In reality, there is nothing called Obama Debt relief act, it's just a program of giving a package of US$787 to the US economy to help the economy recover from the harsh phase of recession.
Instead of debating, if this is just a program or an act, it's more important to focus on the objectives of the act. The main objective of the Obama debt relief plan is to give a rebate in taxes to individual debtors and corporate firms. Since in this plan, creditors are also given tax rebates, as per the money that they have to take from debtors, many of them are trying to take full advantage of this situation. Creditors are willing to go for debt negotiations after the launch of this stimulus package.
How are the consumers going to benefit from the Obama debt relief act or rather plans? Stated precisely, this plan is going to help consumers who want to finally go for debt settlements. By choosing a non-profit debt settlement company, debtors can at least get rid of 50% to 70% of their debts! This has been the biggest advantage of this stimulus package. It has encouraged both the debtors and creditors to go for debt settlements and work out their issues. It's quite understandable that if everyone files for a bankruptcy then it will create a negative impact on the US economy and further burden it.
People must understand that no specific name has been given to this great effort by Obama administration. Hence, don't get confused or fall in the traps of firms that are touting to be your savior in times of financial debts.
On the Internet especially, you will find a lot of information on this bold initiative by President Obama. Obama debt relief grants must be used as a tool to get rid of your debts. You must contact your nearest federal office and seek counseling from expert debt counselors who will guide you on the process of gaining benefits of this program. Be aware of frauds and don't get involve in wrong plans. Don't forget the fact that the federal government has introduced several new laws and rules for debt settlement companies so that people going for debt are not fooled by any such companies.