subject: Avoid Bankruptcy and Reduce Credit Card Debt - How a Credit Card Debt Settlement Works [print this page] If you have been thinking of declaring bankruptcy to avoid paying the huge debt you owe to a creditor, think twice. You must understand the cons of declaring yourself bankrupt. Though this seems to be an immediate solution to your debt worries, the reality is that this solution brings in so many new problems that will negatively affect your future prospects of receiving financial facilitation from most bankers and institutions. It is good that you have decided to do some research by reading articles online and improve your knowledge on debt settlement or credit repair.
The following sections primarily focus on the reasons why you should avoid bankruptcy at all costs and the alternatives to pay off bad debts. Declaring a bankruptcy will reflect on your credit report for 10 years. Even worse, it will pull down your credit score to an all time low thus denting your financial credibility. The decision to avoid bankruptcy has to be taken considering the implications it will have in future. A creditor will be doubly careful if he sees a bankruptcy declaration on your credit report. The low credit score will affect your chances of financing your needs to buy a home or rent an apartment or buy a car and these three digit figures can hamper your chances of being employed with good firms.
Now that we have understood some of the problems that come with bankruptcy declaration, let us delve into the best option available for resolving debt issues. Undoubtedly, debt settlement in the best choice if you are looking to come out this mess. A debt settlement is welcome by creditors because it is any day better than bankruptcy. When a debtor declares bankruptcy there is no means by which a creditor can collect the money due to him. This is the key reason why a creditor offers the debtor to settle bad debts at a discounted price. As this works in favor of the debtor as well (because of the huge discount that is offered), both stand to gain. If you have unsecured debts which are in excess of $10K, I highly recommend you to enroll for a debt settlement plan with a reputed firm. Reputed debt settlement firms are the best when it comes to handling debt problems. Make a pre study and a requirement analysis before you approach these companies.
Avoid Bankruptcy and Reduce Credit Card Debt - How a Credit Card Debt Settlement Works
