Millions of people across the world struggle with debt, and Americans are no exception. Mortgages, student loans, credit cards, monthly payments, late fees, and compounding interest keep our wallets empty and our stress levels high.
In our consumer-oriented culture, credit cards are one of the most common sources of debt. According to 2016 research on U.S. debt, the average household credit card debt is over $16,000 and pays nearly $1,300 in interest every year. Consumers get lured in with promises of pre-qualification and low Annual Percentage Rates only to find that their credit spending quickly grows out of hand. With expenses arising from all sides and creditors being more than willing to extend new lines of credit for those who need it, the credit crisis in the U.S. is understandable.
Fortunately, there several ways to settle outstanding credit debts and get out from under the money owed to creditors in. But when debts become excessive and a borrower’s monthly income shrinks as he barely scrapes by to make minimum payments, the options available to cash-strapped consumers decrease.
When payments can’t be made, many people end up meeting with their creditors on their own or through third-party negotiators to work out new debt management plans. A common style of this debt management is called debt settlement: A strategy designed to help consumers get out from under excessive debts and reduce the burden of monthly payments and interest.
And with the collected amount of debt in the U.S. increasing by the day, debt settlement services are booming. Borrowers looking for new ways to manage their debts should examine all of their options and determine whether debt settlement is right for them.
Help With Debt Settlement
When drowning in debt and with no other options to turn to, many people find debt relief through a process called debt settlement.
Debt settlement involves negotiation with creditors, either individually or by brokering through a third-party debt settlement service, to alter the terms of a credit agreement. This usually results in changing the total amount owed, changing the terms, creating a repayment schedule, or allowing a creditor’s debts to be purchased away. Most individuals find that debt reduction services in are most advantageous because navigating the waters can be difficult and every creditor requires different things to settle. Debt settlement professionals are usually equipped to get the best settlements possible, and have debt attorneys by their side.