In today’s economy, unsecured debt is even less secure with inflation, growing interest rates driving Americans further into debt. The post-pandemic landscape has not been very financially-friendly to millions of people who are being forced to borrow to make ends meet.
As a result of the Federal Reserve raising interest rates a record 10 times over the last year to combat inflation, consumer credit has reached a record high and so has the personal debt balance people are having to carry from month to month. Every type of unsecured debt has been affected with the cost of borrowing becoming very expensive. The average credit card interest rate or APR has increased to 20.4%, according to Bankrate, the highest since their tracking began in the mid-1980s. That was before the Fed raised rates again on May 3 by .25%. Now it’s at 20.65%.
For individuals who are experiencing high debt, they might not know where to turn. The picture looks pretty bleak. Who knows how long it will take for people to gain control of their finances, perhaps years or decades?
Is there a viable solution that won’t cause someone to have to resort to bankruptcy? Because bankruptcy is definitely not the answer. Rather, it should only be looked into after all other options have been exhausted.
The definitive answer is thankfully, yes. There’s a better way to get out of debt. Instead, individuals facing financial hardship can change the trajectory of their financial future and their lives with the help of firms like Phoenix Law.
With our debt relief services, “we’re actually helping people with these problems and actually giving them a fresh start,” said Phoenix Law Managing Attorney Ty Carss, Esq.
How Does It Work?
Debt resolution is a convenient way that debtors use to deal with creditors to reduce the amount of debt owed. At Phoenix Law, clients have an experienced lawyer by their side to help them. For most people struggling with the stress of too much debt, debt resolution is the fastest and most cost-effective way to pay off what is owed.
This past year, since interest rates and inflation have put consumers further into a spiral of not being able to pay down their unsecured debt, now more than ever people are turning to the debt relief services of Los Angeles-based Phoenix Law.
There’s some confusion when it comes to understanding the difference between debt resolution and debt settlement. However, debt resolution is very different from the goal of debt settlement. Debt resolution demands information from the client’s creditors to determine if they can collect the money owed from the client.
The goal of debt resolution is to get debt accounts removed from the client’s credit report through the dispute process. Throughout the entire dispute process, Phoenix Law provides legal representation.
“It’s all about the idea of changing these clients’ lives. Once you’re relieved of the burden of debt it really can be life changing and these clients will be able to move forward without the heavy burden that weighs on them,” Carss said.
Carss continued, “When we’re able to resolve that debt either through the deb resolution process or the dispute process. Once the burden of debt is gone, the clients are transformed.”