A NEW Credit Card Debt Relief Program, by Matthew Bennett

A NEW Credit Card Debt Relief Program, by Matthew Bennett

Money is essential to the survival of people in this world; however, with money comes responsibility and power. An accumulation of money and other forms of wealth, create opportunities for the owner to be able to better their life and the lives of others. Through certain situations, whether through poor choices or unfortunate circumstances, one may find themselves in a situation of debt. Debt can become a dark shadow, following the debtor in every aspect of life, never leaving, always reminding, until the debt is paid in full. Many people find themselves unable to pay back this debt, and we now have a total of more than $15 billion of indebtedness in the United States. Not only is debt an unwanted friend of the debtor, but the lender is also adversely impacted by non-payment of the money owed. There are ways that the debt is attempted to be collected, but many do neither the lender or debtor a favor, with the lender frequently settling for pennies on the dollar or the borrower being left without potentially essential possessions.

For many people, the option to pay the debt is to work extra jobs to make more money. There are many kinds of people from different backgrounds of life who are left in debt. One available option to repay this debt is through the trade of skills and labor for debt. This program will be most effective relying on the idea that most people finding themselves in delinquent credit card debt are honorable people who have the desire to repay their debt, but are currently without means to do so.

A recent illness, an unexpected natural disaster, and a layoff of a job are some reasons for honorable people to be left with the stamp of having delinquent credit card debt. A trade of skills and labor to the institution in which they are in debt, may lift the burden they find overshadowing them. In a situation in which a person might find themselves jobless, they will be granted the opportunity to give back and repay their debt, whether in part or full, until they reach an agreed upon amount of work. There would need to be an agreement determined prior to the beginning of the payment option for what the terms and conditions might be for the labor. Unfortunately for some, their skill might not be needed at the time or have not been able to be matured into a useful talent. These people may work at jobs that can benefit the institution without the need of specific skills and talents. The jobs may include custodial services and call centers.

For the debtor who does not pay the amount owed because of laziness or lack of desire to find a job, this program will benefit their life greatly. Through this work, they are awarded the experience of work, and will possess a better opportunity to find jobs, preventing a future problem in debt. The labor they provide will teach them the importance of hard work, creating better members of the society.

Certain institutions might not want to have the burden of meeting agreements with the debtors or might not feel that they have jobs that need to be filled. The emergence of a mediator company will provide the solution. The mediator company will pay the debt, and in turn provide the debtor a sense of relief. In turn, the debtor must pay back the mediator company. This company may take their new “employees” and provide them with jobs to work, similar to using them as private contractors. They may loan their employees to other companies, helping fill vacancies that might need to be filled in projects. As well, the company may choose to train those new employees who lack important skills, investing in their ability to benefit them and others in the future. Again, before the work is begun, a contract would be made outlining the responsibility of each party involved, preventing problems that might come in the future.

Similar programs have been tried in the past, and it is important to learn from their mistakes. One noticeable problem that has risen in the past with the trade of labor for the debt goes back to the colonial period of America. The use of indentured servants was greatly used during this time. These servants were given their passage to America in exchange for usually 4 to 7 years of labor. This was very appealing to many people who wanted to escape their troubles of life and build up the New World. Unfortunately, many of these servants worked and lived in very rough living environments. As stated before, contracts must be used in this new model. These contracts would prevent harsh environments of work through an agreement being met by all parties before the exchange is given. Of course, current labor regulations must be complied with.

The arrival on this program will ease the pain of debt. America’s labor force could be strengthened, debt can be relieved, benefiting both the debtor and the lender.