After the huge impact of recession last year, the U.
S.
government aimed to revive the economy and introduced many reforms for the same.
The new Obama government faced a stiff challenge with the ever rising prices and job layoffs.
People were losing their jobs and suddenly their whole finances were getting disrupted.
Without any sources of income they were unable to pay their credit card bills and fell under debt.
They had no savings owing to their lavish expenditure and this increased the problems.
Institutions and large companies also went bankrupt.
To save such companies and banks the Obama administration introduced new reforms and poured stimulus money into these companies.
The stimulus money helped to stem the losses and keep the company running.
The new credit laws were introduced according to which a new rules and regulations body was to be made which would protect the rights of consumers and would have the power to affect the creditors.
The debtors were given the rights to have a say in their debt and loan deals and alter the terms and conditions so they cannot be forced by their lenders.
The minimum credit card limit was reduced to help people avoid unnecessary expenditure.
With the new stricter laws proclaiming that a credit card company cannot hike the interest rates according to their will.
These new reforms make it easier for people to make decisions regarding their debt relief.
It made mandatory for people to attend at least one debt counseling session before filing for bankruptcy.
such a session was meant to convince people to use other solutions like debt settlement instead of bankruptcy to solve their problems.
As such the Obama administration made it possible for people to avoid getting and debt as well as making it easier to pay it off.