| Debt relief is required by those who are unable to | | | | financial crunch. These reforms were the debt |
| make timely repayments to their lenders. The | | | | relief reforms introduced by the US government |
| misuse of the plastic cards leads one to face this | | | | in the year 2010. These reforms were made in |
| grave financial problem. More the cards are | | | | the best interest of the consumers, protecting |
| overused; more is the burden of paying back. | | | | them from the malpractices of the credit card |
| When the burden is too high people look for the | | | | companies. The act which is introduced is named |
| debt relief programs. These programs are offered | | | | as the Credit Card Accountability, Responsibility |
| by the debt settlement companies. They act as a | | | | and Disclosure Act. This act has a huge effect on |
| link between the debtors and the creditors and | | | | consumer credit cards, both on fees and debts. |
| helps in eliminating or reducing the loans. The | | | | The lenders are now required to inform about the |
| biggest problem with these settlement companies | | | | fees hike to the consumers prior to enforcing |
| is that they often charge high fees from the | | | | them. The dues are reduced and at times |
| consumer which further increases their financial | | | | eliminated if the borrower is unable to pay. |
| troubles. Added to this, there are various | | | | Moreover, the credit card companies under the |
| companies which scams the defaulters over | | | | new reforms cannot raise the interest rates after |
| reduction process of dues.. Many people suffer | | | | a certain level. They need to give plenty of |
| from these malpractices which push them into | | | | notices to the credit card holders to bring about |
| some more pressure. During such times | | | | changes in credit card terms. |
| bankruptcy appears as a viable option for most | | | | It can be concluded that the new reforms leave |
| of the consumers. | | | | the borrowers in a win-win situation. Now it is |
| As there is a massive rise of the bankruptcy in | | | | possible for people to get out from the financial |
| the society certain reforms were introduced to | | | | crisis without the help of the settlement |
| save the economy from falling into another | | | | companies or any other sources or means. |