Many consumers may have been happy to hear that the unemployment rate did move down slightly, along with 117,000 jobs being added in July, but there are some who hope that this will point to continued benefits and the growth of the job market and the economy. However, there are a great number of downsides that are still in place within our economy, the job market, and more importantly in the personal financial lives of many consumers. While the unemployment rate is still above 9%, few consumers are concerned about facts and figures but are looking at how this information will impact them on a personal level due to the fact that many long-term unemployed consumers are still facing high amounts of debt and may be struggling under these credit obligations as a result.
While this is not always the case, there are some unemployed consumers who have been turning to debt settlement programs as a way to help them pay off what they owe in a situation where they may not have the brightest outlook on their employment opportunities in the future or some workers are stuck in a job where they are making a substantial amount less than they once had been. Sadly, debts have arisen as a result of unemployment and unemployment, but when consumers have either lost the job entirely or are stuck in a job where their income is much less than it used to be, debt can quickly pile up but are not as easily combated due to the financial strains in the lives of consumers.
Because of this fact, this settlement has often been one subject consumers have considered simply because it will allow them to negotiate a settlement agreement with their creditors in exchange for paying less than what they had originally owed. However, there are some financial advisers who say that debt settlement shouldn’t be even considered by some consumers, while there are others who feel that it should be an option to help a consumer in their financial life but it may need to be a last resort.
It’s because some consumers do not understand what a debt settlement program entails that problems may arise. Essentially, a consumer will have to do a great deal of research to find a reputable debt settlement agent or company in their area, make contact with their creditors through this debt settlement adviser, and then hopefully they will negotiate a settlement agreement with creditors so that a consumer can escape further financial distress. While this can be helpful in some cases, debt settlement can hurt a consumer’s credit score, which is an even further setback to those who are unemployed or underemployed, and in some cases debt settlement companies will require that a consumer begin making payments or saving money which will then be offered during the debt settlement agreement to various creditors.
Essentially, a consumer will be responsible for making the decision of whether debt settlement may be helpful for their situation, and this decision should only come after a great deal of reflection and research, but consumers also need to take action well before their situation gets to this point as credit counseling agencies or simply talking with creditors and explaining a consumer’s financial hardships may offer debt relief assistance that will not require a settlement. Yet, since debt settlement can be a difficult process and damage may be done to a consumer’s credit score, finding a reputable debt settlement agency and only using debt settlement as a last resort are just two of the aspects of this form of debt relief that must take place if an unemployed consumer is to avoid doing a substantial amount of damage to their financial life.