Should You Choose Bankruptcy or Credit Consolidation?
Are you interested in consumer credit counseling? If you have a lot of debt, you should be. Consumer debt is on the rise because of our weakened and turbulent economy. Too much debt can obviously make life very difficult. Typically, there are only two options to get financial relief from debt, and they include debt management and filing for bankruptcy. No matter which is chosen, either will help finances by alleviating creditor harassment and by improving your financial situation.
If you choose to use debt settlement, you can pay off loans in a couple years and pay only approximately one-half. Choosing bankruptcy means choosing between two different forms, Chapter 7 bankruptcy, and Chapter 13 bankruptcy. You can take a hit to your credit by choosing Chapter 7 bankruptcy, but you will not have to pay any of your unsecured debt. Choosing a Chapter 13 means that you will use a payment plan to pay off all debts within three to 5 years, and after which all debt will be erased. Chapter 13 bankruptcy is similar to debt settlement since it allows you to pay down (and eliminate) your debt over a set amount of time. Fortunately, though, debt settlement will not impact your credit permanently. Debt settlement is not recorded at all, unlike bankruptcy which can be recorded for up to 10 years and impact your credit.
Debt settlement usually involves a process of negotiating with lenders to reduce payments, forgive some or all of the debt, reduce interest rates, or even combine all of the mentioned options into one amiable package. Bankruptcies are meant to help people pay off their debt completely or get help paying it off through court protection. This process is usually called a ‘liquidation’ or ‘reorganization’ of debt. You can use both methods combined with good planning and hard work to get finances under control and debt managed. Professionals who specialize in debt management can even help you compare mortgage loans when you’re ready to take that step.
Keep in mind that today’s market offers plenty of debt settlement services that can help you overcome your financial woes. It’s advised that you seek out trusted and quality debt counselors before you decide on any financial matter. You will help yourself by getting specialized guidance from a professional debt manager that can provide better results in a shorter period of time. You may discover that a debt management program is your financial salvation!
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