subject: Credit Debt Bankruptcy - Better Alternatives Than Bankruptcy To Eliminate Credit Card Debt [print this page] Credit Debt Bankruptcy - Better Alternatives Than Bankruptcy To Eliminate Credit Card Debt
Credit debt bankruptcy has never helped its consumer. Credit debt bankruptcy provides relief but this relief soon urns into a hazard for human life. When you use insolvency; your credit history is destroyed. Maintaining good credit ratings is not an easy job. Insolvency remains on your ratings for more than 10 years. Once it is removed from the credit ratings; you have to work very hard to repair your ratings.
Lenders and the employers both are not comfortable in providing loans and jobs. Lenders believe that there is no surety that an insolvency filer can return the entire loan amount. Thus they do not prefer providing loans to bankruptcy filers and if they provide loan; they charge high rate of interest, high deposits and provide very limited time period for repayment of the amount. The monthly credit installments are very high and taking this deal is not feasible for any one.
On the other hand the employers believe that by hiring an insolvency filer they will make a mistake. They believe that the filer does not have the ability to make quality decisions and he might not be productive for the organization. If an employer hires an insolvency filer; they pay them very low wages and make them work extra.
The above stated disadvantages prove that one should avoid using the insolvency option. This option should be your last resort; there are other alternatives through which one can gain liability relief. These options include consolidation of debt and settlement of liability. In case of consolidation; the consumer hires a consolidation organization which consolidates all the liabilities owned by the client and then negotiates with the client's lenders for a discount on the rate of interest. After getting these discounts and relaxations; the consumer pays the entire liability total.
Through this method the consumer gains relief from making multiple debt bills payments; he only makes on payment each month and he does not have to concentrate ion deadlines so he does not have to pay high late penalties.
In the case of settlement; the lender and the borrower negotiates and try to break a deal. This deal includes a huge percentage of discounts on the debt total, discount on rate of interest the consumer is liable to pay on the remaining amount and excessive time schedule so the loan can easily be repaid. Through these discounts; the consumer pays a small part of the actual borrowed amount and he gains relief.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals.
