Legal Ways To Erase Debts: Take Advantage Of Recent Legislative Changes

To address uncontrolled behavior of banks and lending institution in the lending market, government had finally come up with stricter regulations. While some laws have been already adopted, there are many more on the way that would limit banks in setting unfair policies, prevent fraud, and regulate uncontrolled consumer debt accumulation. These laws are going to serve to the benefit of consumers, and some are even designed to legally erase consumer debt. This is good news for consumers who have been struggling with intolerable debt payments and are willing to take control of their debts without incurring serious damages to their credit standing.Government Is Finally Taking The Control Of Lending IndustryEconomic downturn and chaotic real estate market behavior caused government to pay closer attention to lending industry and to develop bailout programs for consumers who have suffered most from the recession. Despite the common opinion, such programs do not only regulate the mortgage industry, but also address the issues with credit card debt, personal loans, and other types of consumer financing. Debt relief programs serve as a source of financial assistance and may help individuals with debt problems to reduce outstanding balances on their credit cards, loans, and lines of credit as well as to restructure their monthly payments into an affordable debt repayment plan.Multiple Programs Have Been Designed To Assist ConsumersThere have been several legislative acts and government-assisted programs adopted recently that provide the most benefit to consumers. Hope for Homeowners, a program designed to help homeowners raise the equity in their homes and reduce the burden of monthly mortgage payments, allows for significant write-downs of principal mortgage balances through incentives provided to lenders.The Credit Card Accountability and Disclosure Act protects credit card holders by strictly monitoring and regulating credit card companies and allows for removal of certain charges imposed by lenders, as well as for interest rate reduction on revolving credit accounts. It is also aimed to protect consumers against inadequate interest rate increases and to prevent uncontrollable increase of credit card debt. HAMP, that has been on the headlines of mass media, is finally modified in such a way that allows consumers to quickly modify their mortgages without going into foreclosure and now features fast application processing and more relaxed criteria. Recent changes to loan modification assistance provide more support to homeowners by enabling them refinancing second mortgages.Take Advantage Of Government Help While It LastsWhile most of the new changes are to stay permanently, some that have been made to address consequences of recession may soon be gone. Therefore, it is important to take action now to avail from government assistance while it is available. While government is not going to give money away to everybody who has incurred large debts, a knowledgeable approach may help many consumers legally erase some of their debts without any need for repayment while preserving their credit standing. Numerous online resources provide free information on how you may benefit from newly adopted programs. Consumers may take advantage of professional advice on how to prepare the most effective debt reduction strategy based on their individual circumstances from agencies specializing in debt settlement, consolidation, and modification.