Bankruptcy Alternatives - How To Avoid Bankruptcy With A Debt Settlement

Bankruptcy Alternatives - How To Avoid Bankruptcy With A Debt Settlement

Consumers often see bankruptcy as the only way out of their current financial situation. However, consumers do not like what bankruptcy feels like nor what bankruptcy does to their credit scores. With bankruptcy the consumer often looses everything including houses and cars. They often have money taken out of their paychecks. The effect on their credit score is horrible and stays for 10 years.

The consumer has three choices besides bankruptcy. The consumer can go through credit counseling, debt negotiation, and credit consolidation. This allows the consumer to feel empowered and avoid bankruptcy.

Debt counseling is for those consumers who are in the best shape. Credit consolidation is when all the credit card debt is combined together and there is one lower interest rate. The idea is that with less interest accruing on multiple cards, the payment will be smaller. All the debt will be paid back and no negative effect on the credit score will occur. The advantage to having a professional do the work is that you will end up with a lower interest rate meaning you will pay less money.

The second choice is for those consumers who are making at least the minimum payment. With debt consolidation the consumer hires a professional that helps the consumer lower their bills. They do this by combining all the debt and making one monthly payment usually with a lower interest rate. By having a professional do the negotiating the consumer wins with lower interest rates. The professional will also help the consumer plan a budget that they can live within.

In this choice, you usually have to pay only half of the money and over a period of three years. Under credit card debt settlement the consumer will be working with a company that helps negotiate the bills down where the consumer can handle the payment. Then the consumer will make one payment to that company. They will also help the consumer plan a budget that they can live with. For the consumer this option is very freeing. It also means that later when the consumer wants to buy a home or other large ticket item the consumer can get the loan. The consumer can usually settle their debt for 50 cents on the dollar.

So you can avoid bankruptcy through debt settlement. You can choose to do so today!

Debt settlement is a legitimate alternative to filing bankruptcy. Consumers can expect to eliminate around 50% of their unsecured debt with the help of a legitimate settlement program. With the new FTC laws recently passed in July 2010, debt settlement is a much less risky option. If they don't settle your balance you don't have to pay a dime.

Check out the following link for free help from a certified debt relief specialist:

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