Bankruptcy or Debt Settlement with Credit Card Companies? What is Better?
Are you AWARE of the after effects of bankruptcy and will you consider settling your debt with your credit card company? This article will help you in making this tough decision.
Debt settlement, in other words called debt negotiation, is an option that can give you an opportunity to get rid of your debt.
Debt settlement is also necessary as credit card companies charge high interest rates when you start to repay your debt and this can put unnecessary burden on your shoulders and keep you and your family enslaved for decades.
So instead of paying for your kids’ college, a decent life with vacations and a dignified retirement, you are perpetually making huge payments to the banks.
Not a way to live.
So congratulations: you’ve decided to DO something about your debt, to ELIMINATE the debt, so the question now becomes…
Bankruptcy or Debt Settlement?
Bankruptcy is another possibility.
Bankruptcy comes in two flavors, chapter 7 and chapter 13.
Chapter 7 wipes out your debts and lets you start over. It is like debt settlement, but ordered by the courts.
Chapter 13 bankruptcy is what the government and the banks hope you will exercise. It keeps you in debt for up to five years before you get any sort of forgiveness or debt settlement.
If you file a petition for bankruptcy then you suffer from its after effects in the future for quite some time even if the bankruptcy is dismissed.
Credit card companies may not give you any credit at all in the near future or may put a limit on your credit. Debt settlement is a wise option to avoid all these situations if you can manage the debt settlement.
You may be better off settling your debts than filing for bankruptcy. You may not hurt your credit rating as badly, and you pay your creditors more money and end up debt free without having ever filed for bankruptcy.
Learn more about Debt relief #1. Stop by Richard Geller’s site where you can find out all about Credit card companies #2 and what it can do for you.
