American economy is known to be the largest economy in the world.
Despite being a super power, the country is fighting really hard to handle the recession and its worst impact.
One of the crucial reasons for the situation to worsen is a common man's propensity to spend plastic money through credit cards not realizing the magnitude of financial commitment it creates for oneself.
If total debt is in excess of income earned, one is in real trouble.
Debt settlement is a convenient option available to help people caught in financial crisis.
It is always important to gain a clear understanding of the solutions available before us and carefully decide on the most beneficial one.
Let us now compare credit card debt settlement and bankruptcy.
When an individual files for bankruptcy, the court declares that he is unable to settle the debts whereby the creditors do not have any possibility of recovering the dues.
It is a solution which gives a momentary satisfaction.
But bankruptcy once filed, remains in the credit history for the next 10 years.
During this period it is very hard to get finance for business, home or a vehicle or for any other reason.
If granted, it carries a huge rate of interest.
One surprising element is that the creditors might come forward to offer money as loan again at a high interest rate because bankruptcy can be filed only once in 7 years.
So they are sure of recovering their share of funds.
Credit card settlement is a better way to get out of this mess because the debt settlement agency negotiates with the creditors and helps you settle the amount as a one-time payment or in the form of monthly equated installment after negotiation between the debtor and the creditor.
Credit card settlement also helps creditors to retain some portion of total debts.
Debt settlement affects the credit rating for a period of 3 years after which things get back to normal.
This proves to be a better solution as one escapes from the clutches of bankruptcy.
Despite being a super power, the country is fighting really hard to handle the recession and its worst impact.
One of the crucial reasons for the situation to worsen is a common man's propensity to spend plastic money through credit cards not realizing the magnitude of financial commitment it creates for oneself.
If total debt is in excess of income earned, one is in real trouble.
Debt settlement is a convenient option available to help people caught in financial crisis.
It is always important to gain a clear understanding of the solutions available before us and carefully decide on the most beneficial one.
Let us now compare credit card debt settlement and bankruptcy.
When an individual files for bankruptcy, the court declares that he is unable to settle the debts whereby the creditors do not have any possibility of recovering the dues.
It is a solution which gives a momentary satisfaction.
But bankruptcy once filed, remains in the credit history for the next 10 years.
During this period it is very hard to get finance for business, home or a vehicle or for any other reason.
If granted, it carries a huge rate of interest.
One surprising element is that the creditors might come forward to offer money as loan again at a high interest rate because bankruptcy can be filed only once in 7 years.
So they are sure of recovering their share of funds.
Credit card settlement is a better way to get out of this mess because the debt settlement agency negotiates with the creditors and helps you settle the amount as a one-time payment or in the form of monthly equated installment after negotiation between the debtor and the creditor.
Credit card settlement also helps creditors to retain some portion of total debts.
Debt settlement affects the credit rating for a period of 3 years after which things get back to normal.
This proves to be a better solution as one escapes from the clutches of bankruptcy.