For some kinds of people, debt is inevitable. And for different reasons, sometimes, the debt can rise so high that it seems impossible to banish it because of the growing charges. It may be true that “forgiveness” is the only way to be debt free. Let us discuss some matters and issues surrounding debt relief.
Debt Relief is called the canceling of a debt in full or partial terms. It can also be the cutting of the interest growth or the slowing of it. It can be granted to heavily indebted countries, corporations and individuals. But it is not easy to be granted a debt relief. The background of individuals and corporations that owe a large amount of money will be scrutinized before it can be granted a kind of debt relief. As for nations, only the under developing indebted countries are candidates and requirements must be met.
Debt relief for poor countries was campaigned by NGOs and Christian organizations in the 1990s. As a result, The International Monetary Fund (IMF) and The World Bank formed and launched the Heavily Indebted Poor Countries (HIPC) Initiative in 1996. Debt relief is the main goal of the Initiative. Governments and different international banks are responsible in aiding countries that can no longer manage their debts to reach an even more sustainable debt level.
Twenty three countries have already met the requirements for the HIPC Initiative program and had already been granted or are still receiving debt relief. Some of these countries are Nicaragua, Honduras, Madagascar, Ghana, Guyana and Uganda. These countries can now start to live better and manage their debts unless corruption gets in the way of their progress.
Personal debt relief is somewhat different. The ones who provide debt relief can be the government, some private companies or even individuals. This may be too good to be true but it is still not easy to pass an application for this. The person’s background and the history and details of the debt like how it came about will be studied to test if the debtor can be granted a kind of a debt relief or not. While some rich and good Samaritans may grant debt relief or “forgiveness” to some people they chose, another option for the relief-looking debtors are the financial institutions that are specializing on debt relief.
Even in the internet, there are many advertisements about companies that offer debt relief by reducing the owed amount or at least lowering the interest rate. But debtors must be careful about this kind of strategies because it might be a scam that can leave them in the worst situation. With these good to hear promises, a highly indebted individual might not think twice especially if the creditors have sugar coated tongues. Always be aware and heed the warnings of the victimized individuals whose terrifying stories are even in the net. A good research regarding debt relief will be useful.