Keeping up with monthly debt payments has become increasingly challenging for many borrowers due to rising inflation, higher borrowing costs, and increased everyday expenses. A recent survey by Achieve found that 34% of respondents struggle to make full monthly payments on their debts, and 44% would consider working with a company to negotiate settlements. Debt settlement involves convincing creditors to accept less than the full balance owed, which can be more feasible with certain types of debt. Credit card debt, for example, is often negotiable because it is unsecured, meaning there is no collateral for lenders to seize if payments stop. Understanding which debts are negotiable can help individuals focus on reducing what they owe effectively.
QUESTION: How might the increasing difficulty in managing debt payments impact future financial decisions for young adults?
What types of debt payments can you negotiate?
