Luckily, there are things that can be done in order to eliminate this debt, and for those with enough of it, they can choose debt settlement to negotiate part of it away.
Debt settlement is basically an agreement between debtor and creditor.
The debtor says that he can't afford to pay the whole of his debt anymore and asks if he can pay only a percentage of it.
If the creditor agrees, then he can start to pay back the rest, at a lower interest so that he can be able to afford it.
The intermediary between the parties involved is usually some sort of dent negotiation agency, hired by the debtor to obtain the best deal and to carry out all necessary actions on his behalf.
This agency is usually attorney-based, as it is often necessary for the debtor to write so-called letters through which the negotiations take place.
Naturally, the creditor will usually not accept the first offer received, but usually they are prepared to cut at least fifty percent of your debt.
Then you are left with paying off the rest of your debt and the agency fees, which are usually a percentage of what you save, both paid at a low interest rate so that you can be rid of your debt in two or three years.
This timeframe depends on the level of your income and if you are able to pay it back before schedule.
You may be wondering why a creditor would be willing to make such a deal with you - it's quite straight forward.
Because of the current state of the economy, they are worried about going out of business and can accept at least a part of what you owe so that they can continue to function given the circumstances.
In the long run, debt settlement is something that can benefit both debtor and creditor and also help keep the economy going for just enough so we can get back on out feet.