Credit Card Debt Settlements Vs Bankruptcy - What is the Best Way Out of Credit Card Debt?
When pressure from your credit card issuers and debt collection agency increases, it becomes very difficult to think about your long term goals and plan accordingly.
When you receive twenty phone calls from your debt collection agency in a day, it is very convenient to go in for bankruptcy so that you enjoy a short term benefits.
However, just take a look at the disadvantages of going in for a bankruptcy.
For starters, your credit report will be damaged for the next 8-10 years.
This will make it very difficult for you to get affordable loans.
In fact, you find it difficult to go in for even a leased car or leased house in the first few years after you file for bankruptcy.
There are numerous legal formalities involved.
There is a possibility that the court may refuse your request for chapter eleven bankruptcy.
You may end up with a state sponsored debt management plan where you have to repay all your debts over a period of five years.
You will still end up with bankruptcy on your credit report and will not enjoy the benefits of immediate debt relief.
On the other hand, a debt settlement deal is a much preferred alternative.
For starters, if offers almost all advantages of bankruptcy without any of its consequent disadvantages.
If you go in for credit card debt settlement, your total amount will come down by 50% -70 % of the moment the settlement deal his are finalized.
Secondly, the settlement deal gives you an opportunity to improve your finances by repaying the debts in a prompt manner.
As you repay the balance amount owed, you learn to exercise more control over your finances.
Thirdly, credit card debt settlement deals do not cause long term damage to your credit report.
There is a possibility that the credit card lender may simply ignore the point of settlement if you seem like a good and a productive borrower.
In any case, you can make use of debt relief and credit repair measures simultaneously.
This gives you a much better chance of overcoming your financial problems without ending up with a damaged credit score.
Finally, you can easily find reputed debt settlement agencies that specialize in providing best quality relief by negotiating with your lenders.
You just have to make use of the World Wide Web and you can get affordable services.
You can also pay on the basis of performance so that you do not suffer any financial laws unless you get a benefit in return.
When you receive twenty phone calls from your debt collection agency in a day, it is very convenient to go in for bankruptcy so that you enjoy a short term benefits.
However, just take a look at the disadvantages of going in for a bankruptcy.
For starters, your credit report will be damaged for the next 8-10 years.
This will make it very difficult for you to get affordable loans.
In fact, you find it difficult to go in for even a leased car or leased house in the first few years after you file for bankruptcy.
There are numerous legal formalities involved.
There is a possibility that the court may refuse your request for chapter eleven bankruptcy.
You may end up with a state sponsored debt management plan where you have to repay all your debts over a period of five years.
You will still end up with bankruptcy on your credit report and will not enjoy the benefits of immediate debt relief.
On the other hand, a debt settlement deal is a much preferred alternative.
For starters, if offers almost all advantages of bankruptcy without any of its consequent disadvantages.
If you go in for credit card debt settlement, your total amount will come down by 50% -70 % of the moment the settlement deal his are finalized.
Secondly, the settlement deal gives you an opportunity to improve your finances by repaying the debts in a prompt manner.
As you repay the balance amount owed, you learn to exercise more control over your finances.
Thirdly, credit card debt settlement deals do not cause long term damage to your credit report.
There is a possibility that the credit card lender may simply ignore the point of settlement if you seem like a good and a productive borrower.
In any case, you can make use of debt relief and credit repair measures simultaneously.
This gives you a much better chance of overcoming your financial problems without ending up with a damaged credit score.
Finally, you can easily find reputed debt settlement agencies that specialize in providing best quality relief by negotiating with your lenders.
You just have to make use of the World Wide Web and you can get affordable services.
You can also pay on the basis of performance so that you do not suffer any financial laws unless you get a benefit in return.