Three Ways to Mess up Your Debt Settlement

Debt ratios for consumers across the country are at historic highs in terms of debt versus income, as a percentage of the Gross Domestic Product, and -----. As a result, a record number of consumers are seeking debt relief in the form of debt settelement, debt consolidation, debt counseling, and bankruptcy.
As traumatic as going through any of these processes from start to finish can be, many consumers end up right back where they started, facing a huge debt load with monthly payments that are again out of reach. Having been buried with the burden of debt once, how does it happen that these consumers end up in the same predicament? Three behaviors typically put consumers back in harm’s way.   
* I’m glad that’s over! – Letting a little complacency sneak in is natural once the debt settlement process begins. Collection calls are less frequent, there is only payment to make, and there might even be a little money left over at the end of the month. Relaxing a little is definitely permissible. It’s a mistake to get carried away however. A consumer taking the attitude that “it’s over“ can fool himself into the belief that it was all temporary and there is no need to change all those bad spending habits, when nothing could be further from the truth. 
* Whew! We just dodged a bullet. Let’s party! – In a debt settlement, a consumer’s credit card  payments are reduced by around 50% per month. If that struggling consumer was managing to stay current on the credit card payments right up to the beginning of the debt settlement, the reduced payment means that the consumer will have extra money in his or her pocket once the settlement is in force. Logic would have it that the consumer should put that extra money in a savings account or apply it to other debts but those actions would require the changes mentioned in the first bullet point. Instead, many consumers begin consuming again. If part of that consumption is to make up for lost time, the party is on and trouble is not far away.
* What, me worry? – No budget, no plan to save anything, and continued spending at levels that can’t be managed. All the issues that put the consumer into debt settlement in the first place are in full force again. The discipline required and the changes that should have been made never quite materialized and the effort and the opportunity to get back on solid financial footing has been lost.      
For consumers struggling with the burden of too much credit card debt, a debt settlement can provide the opportunity to rebuild and gain control of their finances without going through a bankruptcy. The settlement process, however, is only half of the formula and a temporary one at that. Consumer behavior and spending habits have to change as well or all the effort  of the debt settlement will go for naught. Fortunately, the needed changes are not difficult but they do require a level of discipline and commitment. For a lifetime of financial freedom, that discipline and commitment can go a long way
Login to post comments

The debt settlement experts at USA debt have years of experience helping average people overcome their problems with debt.  Debt settlement is a way to create a plan to pay off your debt while negotiating with the lenders you owe money to.  Lenders may include credit card companies, banks, collections agencies, utility companies and more.  We can help you with your debt problems, including:

•    Credit Card Debt
•    Medical/Hospital Bills
•    Department Store Credit Cards
•    Oil/Gas Credit Cards
•    Personal Loans (unsecured)
•    Overdue Rent
•    Autos (Repos)s
•    Local Merchants
•    Past Due Utility Bills
•    And more!

How USA debt Can Help

We are your advocate, helping you, informing and guiding you through the debt settlement process.  With our assistance, you can:

•    Reduce your unsecured debt
•    Have an advocate deal with your creditors
•    Arrange one affordable monthly payment
•    Complete the program in 12-26 months

With our help, countless people have gotten completely free from their unsecured debt and managed to change the way they live their lives.  No longer fearful of collection agency phone calls or terrified of bills piling up, people are able to enjoy a high credit rating and financial freedom.

USA Debt Settlement Resource Center

We don’t just guide you through the process; we supply accurate, in-depth information so that you understand what it is you’re doing and the benefits.  Articles, blogs, news stories and information sources are all available at  We are your partner throughout the program, and we invest our time, knowledge, experience and resources into you so that you can become a debt free individual.

The debt settlement experts at have worked with countless people all across the country, walking them through our comprehensive debt settlement plan.
You can take advantage of the information, knowledge and debt settlement professionals at by simply calling filling out our contact form today!