30 Jan Debt Settlement Vs. Bankruptcy: What Is The Best Option?
If you have significant credit card debt you may have considered credit card debt settlement or bankruptcy. It’s important to consider the differences. Bankruptcy is recommended as a last option because it severely limits how you can engage with money during the duration of repairing your debt. Credit card debt settlement is a quicker, more flexible way to pay off your debts.
Bankruptcy involves the court system.
The following details are decided by a judge:
- The final decision on the type of bankruptcy you can file
- Which of your debts are eligible
- Follow up and duration of monitoring your finances
As a debtor, it is rare that you would go to court or have an opportunity to even talk with the judge while filing for bankruptcy. It may also involve an investigation into your finances, liquidating your assets and/or require you to go to several hours of credit counseling.
Credit card debt settlement is completely different. It allows you many options to work with a company negotiating on your behalf with your creditors. You talk individually to a debt settlement agent assigned to your case and they talk to the creditors to create a plan that works for you. You can also negotiate yourself if you’re confident in your ability to do so.
Creditors can also reach out to you and offer to cancel your remaining debt after you pay off your credit card debt. The problem is the upfront payment may be quite a large number and in most cases, you’re required to pay right away or your credit card debt will remain, accruing more interest fees. In addition to that, in your desperation, you may feel this is your only option, without taking the time to research the company you’re working with or the additional fees associated with your credit card debt.
Why Would You File For Bankruptcy?
- If you have very little money to spend on settling your debt
- If you want your assets to work for you (you have valuable assets you don’t need)
- If most of your debt would not be exempt from being discharged (from credit cards)
- If pressing pause on the money you owe for a limited period would help you catch up
Know All Your Options
Debt settlement companies can work with you to control your credit card debt in a number of ways. They can help you with credit card debt consolidation and settlement. Credit card debt settlement companies also helps you lower your interest rates which gives you a much quicker way to receive c
redit card debt resolution in a highly affordable way. They can also procure the option of credit card debt relief, which gives you a way to use a credit card different to improve your credit score and pay off your debts.
With the credit card debt relief company you will get a customized plan that works with your budget and repayment timeline. Resolving a high level of credit card debt is an achievable goal when you have a knowledgeable company on your side. For many, settling debt works well. Settling is a way to create a repayment plan that rewards you for your effort of paying by eliminating a portion of your debt after a period of regular payments. It creates space for your realistic ability to pay a debt in the details of the program.
If you work with a legal, experienced company they will create a plan that helps you achieve a reduction and resolution of your debt specifically tailored to your financial situation.
Get Ahead of Your Credit Card Debt
Waiting until you have more money to pay off all your credit credit debt can leave you in a dire situation. If you need credit for education, home repairs or medical fees your debt could limit your ability to take action. The longer you wait, the more your interest fees stack on top of your already existing credit card debt.
If a settlement isn’t the best option for you the credit card debt relief company can help you consolidate credit card debt. If not, you may need to consolidate credit card debt to get your best option. You could do this with a loan or a credit card debt relief program using a special consolidated credit card.
This could allow most or all of your debt to merge under one payment, with one interest rate. Credit card debt consolidation is a great option the credit settlement company might recommend for you because it makes your credit card debt more manageable and actionable right away. This is an option even if you are low on money and have a low credit score. Luckily you don’t need to make these difficult decisions to start tackling your credit card debt on your own.
The debt settlement company Consumer Credit Card Relief has the 5-step process to help you tackle credit card debt:
- A free consultation with a debt counselor
- A debt resolution program created for you
- A low payment monthly
- Their negotiators begin working with creditors
- You get credit card debt relief
Credit card debt can be a financially debilitating situation. Most Americans enter into the world of credit not fully understanding it. Its deceptively easy to get behind and many fees are not transparent until you find yourself in a situation you didn’t anticipate being in. While it’s massively stressful to go through this, it’s even more stressful to allow the fees to pile up and limit your financial ability and credit score.
In this modern financial world, your credit score will always afford you more financial freedom. The longer you wait to work on your debt the harder it will be to get out. Bankruptcy might sound like a decent option, but not everyone qualifies and it can keep you tied to financial ruin for many more years than it would take to talk to the experts at Consumer Credit Card Relief getting a customized plan for your credit card debt.
Dealing with this stress can be managed in two initial steps:
- Get yourself into a motivated frame of mind, allow yourself to feel empowered
- Admit to yourself that getting help is a privilege you can take advantage of
Take a chance today and get a free consultation from the best credit card debt relief company. You’ll come away with a better understanding of your options from experts accustomed to dealing with financial situations just like yours.