subject: Solutions For Credit Card Debt – Why Bankruptcy Should Always Be The Last Option [print this page] Solutions For Credit Card Debt Why Bankruptcy Should Always Be The Last Option
There is a reason why many financial analysts and debt settlement experts never recommend bankruptcy unless every other option has been explored and exhausted. It has been dubbed as the final alternative in dealing with overwhelming credit card debt.
The allure of declaring bankruptcy is pretty obvious, such as the immediate relief from stress, mental, emotional, and physical symptoms, induced by the problems caused by card debt. There is also the instantaneous cessation of creditors pursuing you and harassing you in efforts to get their money. But do the long term effects of bankruptcy make it a risky move, which could potentially derail your financial resurrection rather than aid it.
For starters, a declaration of bankruptcy can stay on your credit report for seven years at the very least and it could stay there for a decade. With such an item on your credit report, it would be very difficult for you to make any financial transactions, such as securing loans, buying a home, or financing a car. And it would remain that way until your credit report is cleared from the bankruptcy declaration.
If you declare bankruptcy, rebuilding yourself financially will be hard since you cannot apply for loans and secure others sources of funds. While you do get yourself cleared from all your credit card debts, you aren't able to get funding from the usual avenues.
There are still other options you can explore. You can invest in a debt settlement company to look for solutions that will fit your current financial standings and help you settle your credit card debts without filing for bankruptcy
