Roughly one in three Americans have delinquent debt according to 2022 credit data from The Urban Institute. At 16%, medical debt makes up the highest percentage of debt delinquency, but consumers also default on student loans, auto loans and credit card debt.
If someone’s debt is so large that making payments becomes unmanageable (or if paying off the balances would take an unthinkable number of years), consumers may benefit from debt relief, also called debt settlement.
While there are risks involved, debt relief companies can help consumers negotiate their debts down, either with the original lender/card issuer or with a collections agency. This gives people who are in over their heads a chance to clear away their balances at a lowe…
Read the full article at: https://www.cnbc.com/select/taxes-on-forgiven-debt/