Many people are struggling to make ends meet following the pandemic. Since then, the price of many everyday items has gone up, including gasoline, groceries, housing, and seemingly just about everything else. Many people find that the only way out of their credit card nightmare is to secure some form of debt relief or debt settlement.
There are many different options to choose from, so it is important to make sure you are aware of all the processes that entail, what supplemental fees you may incur, and how long it will take you to pay back the loan.
Many Americans in Debt:
According to U.S.News.com, in 2023, the U.S. will experience its largest amount of personal loan debt. Some of the statistics could be a reason for concern:
- The personal loan balance in the U.S. is $241 billion, a 54% increase since 2019.
- American adults have an unsecured personal loan; many have more than one personal loan.
- On average, borrowers have $11,692 in personal loan debt, which is up from $8,780 since before the pandemic.
- Loan delinquencies are also up with. Many are more than 60 days past due.
Today we are seeing people take out larger loans, despite the increase in interest rates.
Is a Personal Loan or Debt Relief Consolidator the Right Solution for You?
Many financial institutions offer personal loans that are used to pay down or pay off debt. According to Forbes Advisor, securing a personal loan to pay off credit cards is called a debt consolidation loan. In many cases, the interest on a personal loan is less than a high-interest credit card. Also, the debtor will be paying one payment per month, instead of individual credit card payments.
Companies like Symple Lending are just one of the many companies that offer personal debt consolidation loans. This can be a great idea if you are dedicated to paying off the loan and not charging anything for the charge cards that have been paid off.
Another option that is attractive to some people is a debt relief consolidator. Companies like Freedom Debt Relief work with your creditors and negotiate settlements on your behalf. The debts are paid from funds secured for this purpose and are paid directly from the negotiating company.
More great information can be found on sites like NerdWallet.com. If you are feeling helpless like there is no relief in site, think again. You do have options, you just need to determine the best one for your financial situation.
Passionate content writer and savvy blog publisher, Aamir crafts compelling stories and insightful articles that captivate and inform. With a knack for blending creativity and strategy, they bring fresh perspectives to every piece. Dive into their world of words and discover content that resonates.
