Are you overburdened with a huge amount of unpaid credit card bills? Are you still not satisfied with the income that you make in a particular month? If you think that your monthly income is not enough to support your spurring debts, you must be thinking of filing bankruptcy so that you can start afresh. Well, though it is true that bankruptcy will help you start afresh, yet you must be aware of the detrimental impact that it may have on your credit score. If you ask any financial consultant about which option to choose when you’re up to your eyeballs in credit card debt, they will always ask you to test all the options so that you do not file bankruptcy without exploring your options.
Most people who are not at all able to repay their debts, they feel that debt settlement is a better option for them but they’mre somehow confused whether it is better to settle your debts or go for bankruptcy. Both debt settlement and bankruptcy has a negative impact on your credit score and thus you have to measure which debt relief option is better for you in accordance with your present financial situation. If you think that you can’t repay the entire amount that you owe on your credit cards, debt settlement is always a better option than bankruptcy.
Not all debts can be charged off through bankruptcy, the lenders may repossess your property, it may adversely affect your credit score and you may not qualify for further lines of credit in the future. There are basically 2 types of bankruptcy, Chapter 13 and Chapter 7 and both these bankruptcies stay on the credit report for a long period of over 7-10 years. On the other hand, you can go for debt settlement so that you do not let the lenders repossess your assets and let it hurt your financial future.
If you choose to settle your credit card debts, all you have to do is to contact a debt settlement company and speak about your financial situation. You must tell them about your present financial condition so that they know the exact reason that is barring you from making timely payments on all your credit cards. Once they know the problem, they can negotiate with your lenders and ask about a reduction in the principal amount. Once the balance is slashed off, you have to start making a single monthly payment to the debt settlement company so that you can repay the entire balance on time.
Therefore, if you’re knee deep in debt and you’re considering whether to choose debt settlement or bankruptcy, you can certainly choose debt settlement as the adverse impact on your credit score will be less than that of bankruptcy. Take an informed decision so that you can easily stay on top of your finances deleting all your financial worries.
To get debt related help visit: http://www.debtconsolidationcare.com/debt-free.html
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These articles are for the benefit of our readers including those from other states besides Indiana, and might not pertain to, or reflect the laws of Indiana or the practice areas or opinions of The Garrison Law Firm.
