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Georgia is a gorgeous southern state that offers its residents a blissful life. Many residents thoroughly enjoy the state’s wonderful climate, beautiful natural areas and exceptional economy. The state has a relatively low unemployment rate as well as a diverse economy with many job options in a wide range of sectors. Some Georgia residents have successfully achieved financial security through their hard work, but others have been less fortunate. Some are in such dire financial circumstances that they are unable to make the minimum monthly payment on their credit card accounts and other debts. If you can relate to this and are looking for an effective debt relief solution, debt settlement may be the answer you are looking for. By exploring this option carefully, you can decide if settlement is an option that you want to pursue.

The Personal Finances of the Average Georgian

While many Georgians enjoy a great income with minimal debts, the average resident does carry credit card debt and has a relatively low income. The U.S. Census Bureau reports that 17 percent of the state’s residents live in poverty. Even the average citizen has a tight budget. The per capita income is $25,737 per year. Housing is one of the most expensive factors of a person’s budget. The average homeowner in Georgia pays $1,346 per month as a mortgage payment, and the average renter pays $879 per month. As you can see, the average resident in Georgia has a tight budget, and there is little room to make extra payments for debts. If you are struggling to make your debt payments on time each month, debt settlement is a relief option available to you.

What Does Debt Settlement Do?

If you are like many others, you may have heard about debt settlement, but you may not know how it works. Through this process, you or a debt negotiator will contact your creditors and will strategically request that they reduce the amount of debt that you owe them. While some will not make this agreement, others will agree to write off hundreds of dollars of debt or more. In this way, your debt situation can be instantly improved. In addition, because the outstanding debt owed on an account contributes to the monthly payment calculation, you will find that your monthly debt payments are reduced as a result of successful negotiations. Keep in mind that this is debt that will permanently be erased, and you will never have to repay it.

Who Should Consider Debt Settlement?

Debt settlement is ideal for many people who are struggling to make minimum monthly payments, but it is not well-suited for everyone with a debt problem. First, keep in mind that your creditors may not all agree to reduce the amount you owe, so this process may not be as effective as you may need it to be. Second, the process of debt settlement will create a negative ding on your credit report, and this will show on your report for several years. Therefore, it should only be considered by those who already have a lower credit rating because of their debt situation. Altogether, the ideal candidate for debt settlement is someone who is unable to make minimum monthly payments. If you can make your payments with difficulty and if your credit rating has not yet been impacted by your debt situation, applying for a debt consolidation loan for debt relief may be a great option.

What Debts Can You Settle?

Before you make the decision to settle your debts through negotiation, it is important to understand what kinds of debts you have. Debt settlement can typically only work with debts owed to private lenders rather than to a government-backed entity. Furthermore, this process is used for unsecured debts rather than for secured debts, such as a mortgage or a car loan. Most commonly, credit card debts are targeted during debt settlement and negotiation. In some cases, student loans that are paid to a private bank rather than a government-backed entity may also be included in debt settlement. If you are considering debt settlement, it is wise to list all of your debts that could be settled. Then, you can more easily determine if settlement may provide you with the relief you seek. Keep in mind that if settlement is not effective for you, you may need to pursue bankruptcy for debt relief.

Many people in Georgia have successfully settled their debts and are enjoying the financial relief this process can bring. However, some have been unable to convince their creditors to agree to settlement. If you want to enjoy the best results possible from settlement, it may be wise to hire a professional negotiator for assistance. A negotiator can employ proven strategies to benefit you.