What are the risks of trying to settle debt on your own?
Summary
Many people in the U.S. have high credit card debt with interest rates around 22%, causing financial problems. Some try to settle their debt on their own by negotiating with creditors, but this approach has risks like legal action and tax issues.Key Facts
- Credit card debt levels in the U.S. are at record highs.
- Average credit card interest rates are close to 22%.
- Many borrowers are late on payments and facing collections.
- Settling debt means negotiating to pay less than what is owed.
- Doing this alone can cause timing mistakes, leading to lawsuits or collections.
- Creditors can sue for the full debt and may garnish wages or freeze bank accounts.
- Forgiven debt may be taxed as income by the IRS.
- Professional help can sometimes prevent legal problems and explain tax rules.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.