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The average consumer owes several thousand dollars or more in credit card debt. You may be one of the many Charlotte residents who carry more than the average debt on your credit cards. You may also have other debts, such as medical bills, student loans and more that are weighing down your budget. Some people muddle through, managing to make minimum payments for years until they pay all of their debt off. Others, however, must seek debt relief because their bills are too burdensome. If you fall into the latter category and are looking for help with your debts, consider putting the benefits of debt settlement to work for you.

The Legality of Debt Relief in North Carolina

Through debt settlement, you may be able to live more comfortably with lower monthly debt payments, and you may even be able to pay debt balances off faster because of creditors reducing your balances for you. This can sound amazing and may be just what you need, but you understandably want to ensure that debt relief is legal. North Carolina residents are able to seek debt relief through a consolidation loan, bankruptcy and debt settlement. Filing for bankruptcy is generally an extreme step to take and should only be taken when all other options are exhausted. Applying for a consolidation loan is a great way to lower monthly debt payments, but it requires you to have a good credit score. For many individuals, debt negotiation is the best solution available.

Why Debt is Common in Charlotte

Life in Charlotte can seem blissful on the surface, but the reality is that many share similar financial concerns as you. Many live on a tight budget, and they also struggle with debt like you do. The U.S. Census Bureau states that almost 17 percent of the city’s population resides below the poverty line. Statistics also reveal that the per capita income each year is less than $32,500, and this indicates that the average citizen lives very close to the poverty line. While income levels are rather low in Charlotte, the housing costs are high. The typical Charlotte homeowner pays $1,383 per month for a mortgage payment, and renters pay approximately $926 per month for rent. With substantially tight budgets, it is easy to see why many individuals fall heavily into debt and seek debt relief as a solution.

What to Expect From Debt Settlement

If you have never sought debt relief before, you may not be certain what debt settlement is or how it works. Through debt settlement, you can typically expect to enjoy substantial relief. Most who pursue this option will hire a debt negotiator to work on their behalf as they employ strategies that can yield superior results. The negotiator will communicate with each of your creditors for unsecured debts to inquire about their ability to reduce the amount of debt that you owe. This only works with unsecured debts, so it will not work on car loans or home loans. When properly motivated, creditors may agree to settle your debt for a fraction of what is owed. Your debt balance will be immediately reduced, putting you much closer to achieving a debt free status. More than that, your total debt payments may also be reduced. This can help you to enjoy a more comfortable budget that is easier to manage.

Who Benefits From Debt Settlement?

As mentioned, creditors must be properly motivated to agree to settle your debt. Generally, they must have a solid reason to believe that you are no longer able to make payments and that you may default on the debt. Most who benefit from debt settlement have already fallen behind on debts. Creditors will not simply write off debt if payments are current and they do not believe you may default. Keep in mind that some creditors may opt to sue you for damages to obtain the full amount owed to them. If your creditors agree to write off your debts, this will show as a negative event on your credit report. Because of this, debt settlement may be most beneficial for individuals who already have a poor credit rating.

How to Seek Debt Relief in Charlotte

If you are stressed out about finances, rest assured that debt relief is a viable solution available to you. Many will initially seek credit counseling services before pursuing debt relief. Counseling can help you to improve your budgeting efforts, and it may get you back on track. In addition, the counselor may advise you about which form of debt relief is a superior option for you to consider. They may even recommend a bankruptcy attorney or debt negotiator for you to work with.

When your debts get out of hand, you may seek any help you can find to overcome your current situation. Debt settlement is an option that has helped many people, but you can see that it is not ideal for all situations. Take time to learn more about debt settlement to determine if it is a reasonable solution for you to consider.