You may find the title of this post a little bewildering. You are probably wondering what these four things have to do with each other. Well, what if you replaced the words Debt Settlement with Chevrolet? Would it make more sense to you?
For many, the images of mom, apple pie, baseball, and Chevrolet conjure up images of American life in a simpler, more stable and predictable time. It was a time when families enjoyed picnics, summer barbeques in the back yard, and cross country drives on Route 66. It was a time when you went to school, got a good job, and started a family. You knew if you worked hard you would earn a decent living, be able to provide for your family, and your company would reward you in your retirement years.
These icons have become known as “Americana.”
What does debt settlement have to do with all this? Well, let me explain.
Over the last several months there have been numerous stories about how Chevrolet, or more specifically General Motors, has fallen on serious financial hardships. They now find themselves in a position where they are unable to meet their debt obligations to bondholders and are facing the likelihood of bankruptcy.
How is this icon of “Americana” trying to avoid that?
They are employing a strategy that has become known to many as debt settlement. In essence, they are trying to pay down a substantial portion of their debt to bondholders by offering a reduced settlement. Their offer equates to a settlement of about.50 cents on the dollar, and they are not the only auto manufacturer doing this. Chrysler is also offering to settle their obligations with bondholders in an effort to avoid bankruptcy. Their proposal is to settle 6 billion dollars of debt with a cash payment of 2 billion dollars, which is a settlement offer of about.33 cents on the dollar.
So what is my point in all this?
Many Americans today are facing much the same financial situation as General Motors, however, many have been led to believe that debt settlement is somehow “Un-American”. Creditors, collectors, and credit counselors alike have been very effective in making debt settlement seem unethical or immoral. The truth is that if you can’t pay all that you owe, it is entirely ethical to repay what you can in accordance with your means, as opposed to paying nothing or simply filing bankruptcy.
If you are struggling financially and can’t meet your obligations to creditors don’t allow those creditors, or their agents, to deceive you. Debt settlement is an ethical alternative. In fact, it’s not only ethical and moral…
Debt Settlement is As American As Mom, Apple Pie, Baseball, and Chevrolet!