Debt settlement companies are everywhere these days. With 57% of Americans’ living pay check to paycheck the problem of debt in the US is growing. The average American household is more the $18,000 in debt, not counting a mortgage. In fact, discretionary debt in America has now reached 2 trillion.
With so many people looking for a way out of their debt and falling behind in their payments, where should a person to turn for help? College students with easy access to credit cards, to seniors trying to continue their style of living with all of the losses sustained in their retirement portfolios, to massive job loss in America, the situation continues to worsen. So how does a person find relief from the escalating interest rates, over limit fees, and the inability to pay predatory lenders?
It is not that easy. One the internet you see claims “cut your debt in half”, “slash your payments”, “wipe out your debt in 12-36 months”, “stop harassment calls from creditors”, “improve your credit rating” In reality, even if the creditor settles for half, your total costs will be more due to fees, account charges and taxes. Is debt settlement the answer?
Debt settlement involves negotiating with a lender on an outstanding balance in an attempt to get them to take less than is owed. You can try negotiating yourself or deal with a debt settlement company. Continue reading ‘The Dangers of Debt Settlement – Consumer Alert’ »