subject: Debt Settlement Programs Vs Filing Bankruptcy - Which One is Better? [print this page] Debt Settlement Programs Vs Filing Bankruptcy - Which One is Better?
In my opinion, people who are performing the debt settlement programs vs. filing bankruptcy comparison are not thinking intelligently. Most of them are only looking at the positive factors and ignoring the negatives ones. Some people are also doing so because they are unaware of the cons of bankruptcy. When it comes to debt settlement programs vs. bankruptcy, you need to look at all the important angles. You cannot ruin your future to solve recession related problems. This is the main difference between these two solutions for credit card problems. You need to use a way which is not harmful in any manner.
Debt Settlement programs Vs. Bankruptcy, the big difference
As I mentioned before, being bankrupt brings your credit rank to zero. Is this a worrying factor? To understand the advantage of a high credit rank, you need to understand it usage.
A high credit rank puts you in the good books. A credit card company does not handle all its customers in the same manner and some are given a special treatment. How does the bank select such customers and what factors are taken into consideration. The most important one is the credit score. This increases or decreases on the basis of a point system. Making one payment on time will increase your rank by one point. Similarly, making one late payment will decrease it as well. When you apply for loan, the bank checks your rank and then offers its services accordingly.
Declaring yourself bankrupt is a disreputable act. Nobody trusts bankrupt people. If you are a businessman, you will find it hard to get good customers and suppliers. Apart from that, banks will never sell their services to you because a bankrupt customer has a zero credit rank. Such customers are not eligible to apply for both secured and unsecured loans. You will not be able to use your credit card or get a loan to buy a better house.
The positive affects of debt settlement
Debt Settlement provides all the advantages which bankruptcy does. The difference is that it does not risk your future in any manner. You don't have to worry about getting any kind of financial assistance. Through debt settlement, you can reduce your liabilities negligible extent with the help of a professional organization. Every thing depends on your selection strategy. DO not go for an option which is cheap but incapable. When it comes to debt settlement programs VS. Bankruptcy, liability relief is the alternative which stands out.
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. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
