Settlement

• You may find yourself struggling to repay your debts if variable interest rates suddenly rise, as this can cause your payment to increase. You may also have trouble repaying your debt if you lose your job or lose another source of income. Some people fall behind on debts because they take on more debt than they can reasonably afford to begin with. The fact that you cannot afford to pay the debt does not mean you are relieved of your responsibility to repay the money. However, your lender may agree to a debt settlement, which involves the lender allowing you to payoff the debt for less than the balance owed. Lenders only agree to settlements if such a deal seems to represent the lender's best chance of recouping some of its money.