Due to the increase in the interest rate of the debts, repaying the installments on time has become out of the reach of a person. Credit card debt is making the financial health of many families worse. Last year, the economic recession hit and hit ordinary people more than big companies and the richest people. This recession caused companies to cut their expenses, either by laying off people or cutting their wages. Many companies raised the prices of their products to keep their business running. These circumstances created a flood and most families and individuals were severely affected. They were unable to pay off their creditors’ debts, and as a result, the credit card companies also suffered extreme financial crises. Many people started filing for bankruptcy. This was a blow to the credit card companies.

To handle this situation, the president of the United States, Obama, passed a bill on debt relief and bankruptcy laws. There are two types of bankruptcy cases. Chapter 7 bankruptcy was used by different people as a tool to get rid of debt. So the government designed the laws to help credit card companies. Chapter 7 bankruptcy became nearly impossible. Many other amendments to the laws were also made. To help credit card holders, creditors are prohibited from raising interest rates without notifying customers. They can charge new interest rates on old debts. The Company will apply a higher interest rate first and a lower interest rate after that.

These changes were really helpful in eliminating his debts by almost half. You can hire a company for settlement services because they know how to use the laws to protect your rights and get a good settlement. If you are suffering from the same problem, debt settlement can help you in this hour of need.

You can obtain legal documentation of these laws on official government websites. There are many rules that you may not understand, so consulting a legal attorney can guide you to the proper solutions after reading these laws carefully.