Then these companies have to run after these customers to recover their money. They have already taken a big risk while providing credit to millions of people without taking anything as security. Now, they again take a risk while chasing bad debts of the people. In some cases, they succeed and many times they fail to get their money back. Credit card debt relief programs are their last hope. Through these programs, they can recover a considerable amount without running after their customers.
Each year, credit card companies have to pay huge taxes to the government. There are other costs that eat their income every time. Still they provide credit to their new customers. In 2009, almost 1,412,870 bankruptcy filings were recorded. These were non-business filings and they were twenty three times greater in number than the business related filings. In 2010, this number increased by 14% of its previous value. This mounting number of bankruptcy filings each year will definitely make creditors worried. A debt settlement deal is beneficial for both parties. A person can get almost 50% reductions through this process. Nowadays, Credit card debt relief programs are gaining much popularity. The Major reason behind this increasing trend is the inclination of credit card companies towards credit card debt relief programs.
In 2011, credit card debt relief programs will be improved because the government of United States and Federal Trade Commission is taking keen interest in these programs. Now card companies have a wonderful chance of recovering their money by providing settlement deals to more and more customers. This will increase the trust of people in these programs and they will stop filing for bankruptcies. For helping customers, the government has disallowed all the settlement companies to take upfront fees. At the same time, fees and paper work of both chapter 7 and chapter 13 bankruptcy have been increased. More information about debt settlement laws can be found on the FTC official website.