3 unexpected downsides of debt relief to know before enrolling

Before enrolling, it's important to understand not just what debt relief can do, but also what it may cost you. Spauln/ Household debt levels remain at record highs right now, with credit card balances hovering above $1.23 trillion and average credit card APRs still north of 21% . At the same time, inflation has started to rise rapidly, putting additional pressure on borrowers' monthly budgets, many of which were already stretched thin by growing debt balances and compounding interest charges . For many borrowers, that combination is prompting them to take a closer look at what debt relief programs offer as a potential solution. The appeal of debt relief is easy to understand. When you pursue debt relief — and debt settlement ( also known as debt forgiveness ), in particular — it can reduce what you owe, simplify your payments and create a clearer path toward becoming debt-free. In some cases, it can even help you avoid the more serious consequences of delinquent debt, like lawsuits, bank levies or wage garnishment . But while the benefits tend to be front and center in most discussions, the debt relief process itself is rarely as simple or risk-free as it may seem. So, before enrolling, it's important to understand not just what debt relief programs can do, but what they may cost you along the way. What are some of the most significant debt relief drawbacks that aren't always obvious, though? Below, we'll detail three. …