subject: Alternatives to Bankruptcy [print this page] If you're in a bad financial situation in which you are considering bankruptcy, then I'm sure you're aware of the disastrous effect that it will have on your credit. The fact is that the effects of a bankruptcy can ruin your credit for 7 to 10 years. Obviously no one wants to suffer such a negative consequence needlessly, so first you need to make sure that there isn't sufficient help available for you through another solution that can sidestep this credit damage. That's why it's important for you to investigate credit counseling and a debt management plan (DMP), and to find out if the benefits it can offer will give you the help with your debt that you need. While a DMP isn't right for some extremely serious debt problems, it can provide the crucial difference that many consumers need to get free from their debt problem while avoiding the serious penalties that result from having a bankruptcy on their credit report.
A DMP can deliver powerful benefits for consumers with large amounts of unsecured debt, such as credit cards and personal loans, and can do so without any damage at all to a credit score. These benefits include reducing interest rates on the accounts, no more over-limit and late fees, a consolidated mointhly payment, relief from collection phone calls and shortened payoff schedules of just 5 years or less. If you are like many others with high interest rates and the ability to make only the minimum monthly payments, then you may now be facing the prospect of needing 20 years or even longer to pay off your debt at your current pace. A DMP is a potent debt solution and may provide the relief that you thought only bankruptcy could afford you. Find out more about a DMP and see if you can solve your problem without resorting to bankruptcy.
