Resolve Debt

Erasing credit card debt has become a goal of thousands of people in this recession. The housing boom bust at the end of 2007 forcing borrowers and lenders into a situation the United States nor the world has not seen since the great depression. Historically, credit was established to people in the elite groups. Currently, bankruptcy debt settlements and use of debt group companies are on the rise as our economy and people have began reduce d their standard of living which had previously being increasing.

Decades ago the ability to exchange currency quickly on the fly led to different methods of thought about lending to people at different levels of income. It was not reasonable to expect people to carry two or three thousand dollars to buy a car. However, opening a line of credit allowed the person to either transfer funds to other banks or allowed people to send money electronically to someone. This is where the makings for strategic credit card defaults were born.

This was only able to work built on initial forms of trust and therefore a high value was placed on making sure debts were paid to lenders at every any cost to the debtor or the debtors family. The original lender went out on a line to provide you with credit and therefore you needed to take every step to pay the creditor back. This was also evident by the amount of bankruptcy attorneys present compared today for high unemployment states such as Michigan or Indiana where Michigan bankruptcy attorneys can be found for a dime a dozen.

Fortunately, back when lending  and credit started to occur they had done due diligence with the person they were lending to and made sure the person was able to pay the lender back and  made sure the person was gainfully employed. Unfortunately, we fast-forward 60-80 years people have learned lending has turned into a business and is based on solely on the ability of the lender to make a profit. The days of moral and ethical values have been replaced by greed in the financial market and now this emotion has transferred to the public as well.

Since the housing crash were lenders loaned to almost anyone with decent credit and very lassie faire underwriting of mortgages people have taken a queue from the lenders by evaluating their own financial future by looking at the home the live in and the current value the home they are choosing to let the home go back to the bank or mortgage company. The problem people that are defaulting on loans are capable of paying of these loans but they are choosing to walk away from homes that are upside down. In other words people that owe 300k on a house worth 200K are walking away and letting the lender deal with the house. These people are strategically defaulting on their loans hiring a bankruptcy attorney filing bankruptcy and removing the toxic debt and starting over and with in two years they will be able to buy a home that will appreciate.