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The debt stimulus package website assists thousands of consumers with their debt. The main problem occurring currently is due to high interest rates on credit cards. New regulations will come into effect in Q2 of 2010 that will force credit card companies to more clearly display interest rates during the sign up and billing process. They will also be forced to give notice prior to raising any interest rates. While this is a step in the right direction, it offers little comfort to people that are already trapped in a high interest rate maze.

Lets review an example:

Mr. Smith has $21,500.00 in debt spread out over 5 credit cards. This wasn't something he planned on happening, but his job at the factory reduced his hours and therefore his income. Because some of the low interest rate trial periods on his credit cards ended, his interest rate is now much higher than it was before. Also, because he was late on the payment for one of his cards, the interest went up to 24% APR. Now his overall interest rate averages to 17% on the debt. This is extremely high considering a home mortgage typically runs in the 4.5% to 6% range.

Now Mr. Smith has minimum monthly payment between all his credit cards of $460.00 which he is barely able to afford. If he stays on his current path of only making the minimum payment it will take him OVER 50 YEARS to repay his debts. This means every time he makes his monthly minimum he is have almost zero impact on his debt.

This is where a debt management program can really be effective. Debt Stimulus Package .com can match you with a debt specialist that can explain everything in detail. But by negotiating with the creditors, the interest rate could be lowered down and then Mr. Smith can develop a plan to pay a similar monthly fee, but be out of debt within 2 to 5 years.

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