Recession has descended like a huge dark cloud on the continent. It has been the biggest economic disaster after the Great Depression. There is no denying the fact that recession has caused severe damage to the US economy as well as US citizens. People have been losing jobs every day. The effect can be seen by the huge number of people with unsecured debt. This has also shaken the guts of the creditors.

It is not only the regular credit card user who is in debt but the creditors are barely able to remain afloat. They are struggling to face the damage caused by recession. The government is trying to give them a helping hand. They just can not afford to have all the financial institutions collapsing. With this as the backdrop the government is giving stimulus money to the financial institutions to protect them in the times of recession. It has given them adequate incentive to turn around their financial position before they sink into bankruptcy.

The concept of debt settlements emerges from here. The credit card companies prefer to recover what so ever they can from the creditors. History has shown that on delinquent accounts the creditors have received as less as 5 cents per dollar of debt. This amounts to a recovery of just 5 percent. If they are able to persuade debtors to pay at least 50 percent of the amount it will be a winning situation for the creditors. Therefore they have decided to offer debt settlements to users who have no other option than bankruptcy.

Therefore it is a boon to people looking for debt relief. The users need to arrange 40 to 50 percent of the outstanding amount. Thereafter they can speak to the creditors from a position of strength. This can be seen as one of the biggest positives of recession. Users can take advantage of debt settlements. After the recession this option of debt relief will no longer be available.