subject: Debt Settlement Tips - How You Can Legally Eliminate Debt Without Filing Bankruptcy [print this page] There have been numerous instances where people have filed for a bankruptcy hoping to solve the debt settlement issues, but have found themselves in a hopeless situation after doing so. Have you ever wondered why this can happen? Well, the reasons are many and we will attempt to explicate this with a simple approach. There are two things you need to know when it comes to settling debts. One is the implication of declaring bankruptcy and the reasons why a debt settlement should be considered. It is sufficient if you understand the basics and act on it, as it is common sense in application.
Declaring bankruptcy gives you an artificial sense of security because you will be under the illusion that all credit issues are solved forever. You have to keep in mind that a solution to any problem should be reliable, easy to maintain in future and efficient. When it comes to debt settlement if you are looking at speed or time, you are in for big trouble. Here are the reasons why. A debt settlement will remain on your credit report for about 10 years, which a compelling reason why you should not declare bankruptcy. It will put you in a spot of bother for years to come as your credit score will plummet as soon as the bankruptcy is reported to the three major national credit reporting agencies TransUnion, Experian and Equifax. This will project you in bad light when you approach a lender for loans in the future. Your credit score is referred by prospective employers, insurance agents, landlords and in many other cases where your credibility needs to be verified. I think this is enough reason to avoid bankruptcy at all costs.
The best solution to broker a deal with your creditor is to go in for a debt settlement, where you will come to an agreement of just terms with the creditor. This agreement will be made with the whole purpose of writing off your bad debts by making a partial payment of the total debt due. This discounted payment will be treated as payment in full. However, this is not as easy as it sounds because your creditor will also be looking to get back most of his money. For this reason you must work with experts who are adept at debt negotiation. If your unsecured debts are in excess of $10 thousand, you must get in touch with a professional debt settlement group to help you get a good discount on the due debts.
Debt Settlement Tips - How You Can Legally Eliminate Debt Without Filing Bankruptcy
