In today’s economic climate, the consumer is asking themselves the following questions:
- Is there are way off this financial treadmill?
- How do I get rid of the emotional baggage I’m carrying because of my debt?
- I’m I ready to face the hard decisions about a solution?
As a consumer, you can’t feel like you’re the only survivor on the lost island. According to the American Bankers Association, “ delinquencies on consumer debt has hit a record 3.23%.” The percentage of borrowers at least 30 days late have hit its highest level in 35 years. In additional, consumer bankruptcy has increased by 22% from 2008 according to the American Bankruptcy Institute.
Consumer are making decisions everyday that they need to get out of debt. The majority of consumers want to pay their financial obligations in full. This approach is currently not possible for some consumers. The reason being the current economic climate along with the new financial hardship faced by consumer.
Consumers when faced this issue are reviewing their options. One of the options is debt settlement. Most consumer favor this program over bankruptcy. Bankruptcy should always be the last resort for the consumer. Plus if the consumer decides on this path they need the advice of any attorney.
When you discuss, debt settlement as an option. You will be told it will affect your credit score. This credit score is important to the consumer because its affects your ability to borrow money. David Leuthold, of The Association of Settlement Companies, indicates that many consumers seeking relief have already seen their scores plummet. “Basically, what they’re deciding by coming on to a debt-settlement program it more important than their credit score.”
The consumers credit score can be repaired over time as the consumer pays off or settles their unsecured credit score debt.
If the consumer decides to use a debt settlement program. They need to know it’s not a quick fix and that they will need to tighten their belts. The consumer needs to know that if their financial situation improves then they can opt out of the program and get back on track with meeting their financial obligations.
