Congress finally came to an agreement about the fiscal cliff, and President Obama signed it into law. While the legislation received bipartisan support, not everyone in Washington was thrilled with this decision. What does the fiscal cliff deal actually mean for you? For one thing, it may mean higher taxes. But for another, this could be opportunity for economic stability and growth.
Currently, the U.S. economy can be considered fairly unhealthy. Many Americans are using more than fifty-percent of their credit limits, which leaves them with an extraordinarily high amount of debt and that can even lead to home foreclosures. The worry with going over the fiscal cliff was that the crumbling economy would only get worse and increase in severity with time, which could have catastrophic and extensive global consequences.
Ironically, the plan to avoid what has been coined the ‘fiscal cliff’ was agreed upon by both Republicans and Democrats, yet neither side is completely happy. Furthermore, the debt ceiling has yet to be addressed. There’s a new cliff deadline approaching when lawmakers will have to deal with spending cuts. February could be another ugly time for legislation. However, the recently-passed bill will help protect millions of middle-class taxpayers who were originally going to be subjected to tax increases. This, along a with debt settlement program, will be highly beneficial to American people.
The good news about the fiscal cliff decision is that we’ve hopefully avoided a recession. Debt negotiation plans will only help the process of nationwide economic growth by allowing American families to pay off unsecured debt while giving them more financial breathing room each month. After deciding on a debt settlement plan, this extra money each month can help families stay current on mortgages, reduce cases of foreclosure and spend more in the U.S. market. Fewer foreclosures, more dispensable income and less personal debt are all beneficial to the growth of our economy.
The ability for the average citizen to spend money is something that should be addressed. Without an influx of extra cash each month for consumers to spend on services, packaged goods and entertainment, there won’t be the needed financial power to support our country’s slowly recovering economy. If people are spending disposable income, the economy can flourish. However, with many Americans in an extraordinary amount of debt, coupled with a fear of tax increases, families around the nation are tightening the purse strings.
Now that some tax hikes have been avoided, credit card debt relief can help boost the positive effects of the recent fiscal cliff decision. Debt settlement can allow more people to have more freedom to spend on things like dining out, weekend entertainment, or American-made products. All these spending habits can help the economy get back on its feet. Americans can stop tightening their belts a bit, and hopefully start spending a little more.
When in severe debt, most people think of bankruptcy as the only available option to get out from under the heavy burden of owing money. Between creditors constantly calling, delinquencies and even repossessions bankruptcy can seem like the only way out. However, it can be an embarrassing process for many people as the record of bankruptcy stays on your credit report for anyone to see for another seven to ten years. Qualifying for loans will be much harder, and even if you do qualify you’ll be required to pay the highest down-payment and interest rates.
Luckily, bankruptcy is not the only option. Debt settlement plans also reduce the need to claim bankruptcy- consumers stay more in control of their financial situations and suffer less negative impact on credit scores. Since their credit scores will not be as severely impacted with debt relief services as they would under traditional bankruptcy, consumers will have more ability to make those economy-boosting purchases, like homes and cars.
If you’re in debt and struggling to find a solution, debt negotiation is a viable option. The economy is slowly but surely on the rise, and settling your debt has never been easier. The fiscal cliff deal was not a magic solution to an uncertain economy, just as debt settlement is not a magic solution to a debt problem- but it’s certainly a reliable and trustworthy solution to which consumers can turn.