The current economic climate is having a profound impact on many people's finances. Not only are prices rising on necessities like housing, groceries and gas, but interest rates are also high, meaning that borrowing is a lot more expensive right now. It's not just new loans that cost more, either. If you're carrying credit card debt, the variable rates on your cards have gone up recently, meaning that the interest charges are now higher than they once were.
If you're working with a debt settlement company, the expert you're working with then attempts to negotiate lump-sum settlements with your creditors, often settling for a fraction of the outstanding balance. Once a settlement is reached, you pay the agreed-upon amount, and the remaining debt is forgiven.While debt settlement can provide significant debt relief, it has its own set of drawbacks.