subject: Filing for Bankruptcy? Debt Settlement Programs are Better Options [print this page] Filing for Bankruptcy? Debt Settlement Programs are Better Options
Filing for bankruptcy can seem like the only option when your are in serious debt.
A bankruptcy can ruin your credit for a decade or more. Fortunately this doesn't have to be the only option. Debt settlement is a much better option that won't damage your credit as seriously. Here's what you should know about the programs available.
Aurora Lillo Editor of the "Reputable Debt Settlement" website -- http://www.ReputableDebtSettlement.com -- pointed out;
"...A debt settlement is a way to pay your creditors a portion of the balance you owe. Since the creditor would rather see some of the money over none of it, many of them are willing to cut the amount you owe to clear the account. A settlement negotiation will allow you to shave anywhere from half to three quarters of the existing financial obligation and clear the account..."
Many creditors won't advertise the availability of these programs. As a result, many consumers are left in the dark regarding their options. This is where a debt settlement company can help.
These companies are designed specifically to help consumers get a grip on existing obligations. Many programs include counseling to help people stay out of trouble in the future.
These debt relief companies work by taking the reigns and working directly with the creditors. They will negotiate an acceptable amount of money based on several factors. Your income, other bills, and credit score to find a payment plan that works best. Once the original creditor has agreed to a set amount and time frame, a counselor will then work with you to save the money in the time allotted. In most cases you will be required to set up a savings account that will be used only for this.
Debt settlement companies aren't free. Many will charge a fee based on the percentage of the amount of money owed, or a percentage of the amount of money you save with the settlement offer. While this can be a turn off for many, the amount of money spent on the fee is usually far less than what you spend paying the full amount. Not to mention the fee is almost always worth saving your credit by avoiding bankruptcy.
"...These programs won't preserve a perfect credit score. However, a bankruptcy is beyond damaging, and settlements will reflect a payment made and the account was settled in a satisfactory manner. It's much easier to rebuild from this than it would be with a bankruptcy scarring your credit for 10 years..." added A. Lillo.
Further Information By Visiting; http://www.ReputableDebtSettlement.com
