The general population is calling this a stimulus package and is hoping that the benefits will extend to them. People who think that the ARRA is a credit card debt relief program that will help them pay off their personal debt have misunderstood it.
The debt relief act is an act that has been passed to help the American consumers get relief from their personal debt. The Federal government, as yet, does not pay off personal credit card debt, but it has taken steps in the direction of stabilizing and preventing such debts from mounting.
This act has been misunderstood by many as the Federal government credit card debt relief plan to eliminate credit card debt.
Financial institutions have long been taking advantage of the loop holes, that have been there in the laws, to make a hefty profit. They have leveraged the fine print to take advantage of many consumers.
The credit card act of 2009 is being hailed as the federal government credit card debt relief plan because the provisions in this act safeguard the interests of the consumers.
The act requires credit card companies to give 45 days notice to cardholders, if there are going to be changes in the interest rates. Card companies will have to keep the agreements online so the government can monitor and propose changes, if needed.
Earlier card companies mailed the statement 14 days before the due date, now they have to do it 21 calendar days in advance. Card companies are also prohibited from changing the terms of contract arbitrarily, companies are also prohibited from increasing the interest rates on the existing balance.
Putting a stop to the practice of using fine print and misleading terms is one of the most valuable provisions of the credit card act. The government has even stipulated the size of the font that will be used for the terms of the credit card. It also puts a restriction on the 'over-the-limit' fees that card companies levied on the cardholders.
Credit Card Debt Relief
The measures taken by the government has nudged the card companies to improve their practices. It has also deterred them from taking advantage of the consumers who are caught in the credit card debt trap. Financial institutions have been agreeing to settle and some have even waved of the accumulating interest rates.
One of the ways that you could get out of your debt without waiting for a personal credit card debt relief program is by contacting consumer credit counseling services. Look for an agency which is either a part of the National Foundation for Credit Counseling (NFCC) or Association of Independent Consumer Credit Counseling Agencies (AICCCA).
These agencies have lawyers and professional debt counselors who can assist you in negotiating with your creditors. Card companies have been known to settle for 40 - 50 percent less amount than what you owe them.
You could probably get them to stop charging you interest on the amount due, which can provide instant financial relief. If you are okay with it, these counseling services could also get you on a debt management plan and give you tips for reducing credit card debts.
All these might hit your credit score but you can get it up, once you are out of your debt, anyway it is better than declaring bankruptcy. If you have some basic communications skills you could settle credit card debt yourself, by negotiating with your creditors directly.
So if you are in debt and are looking for ways to get out of it, then a credit card debt relief plan is a reliable alternative. The Obama stimulus package and new credit card reforms have helped the consumer market to a great extent and hence have been hailed as the Federal government credit card debt relief assistance initiative.