Tips,How,Choose,Between,Debt,S finance, share, loan Tips on How to Choose Between Debt Settlement vs. Bankruptcy
If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that
Sometimes, some people think that declaring bankruptcy is the only way on how they could remedy their credit card debt problem. They dont really realize that there are other ways, such as debt settlement, which would also be able to help them in their current situation. Here are a few tips to help people decide which method to choose; debt settlement vs. bankruptcy.The first thing that needs to be done is to determine the severity of the debt. This could be done by checking the credit card record which will be able to tell about negative payments made, this would include charge offs or late payments. In addition to this, the credit card owner should also be able to determine the total amount that he or she owes. Once this is done, the salary and other sources of income should also be calculated and compared with the amount of debt. This will clearly show if the credit card owner is capable of paying his or her current debt. When the income is just enough to pay for the basic financial needs, it is advised that they choose to file a bankruptcy over debt settlement because it is clear that you really cant afford to settle. Now, the only problem is to determine if the credit card owner qualifies for the chapter 7 or the chapter 13 bankruptcy.Another thing that could be done to help choose between debt settlement vs. bankruptcy is to find a settlement company, which require various amounts of outstanding balance, to negotiate with the creditors. In addition to this, credit card owners should also have an idea on the impact of the bankruptcy on their credit score and if bankruptcy could really clear up all of their debts. Sometimes, the damaged done by filing a bankruptcy on the credit score is not worth waving the debt. Some prefer to find someone to settle the debt because it would not lower the credit score, it might even increase the credit score.The credit score is highly important to people who are considering loaning money for their home or cars in the future. Filling for bankruptcy decreases the credit score and leaves a negative remark on the credit report for up to 10 years. When this happens, it would be more difficult to loan for money that could be used for mortgage.Although being not qualified for bankruptcy and not finding a settlement company rarely happens, it should be noted that people who undergo this situation could choose to consolidate bills and enrol in a consolidation program. It is also important to note that with whatever method is chosen, the credit card owner should still pay for the service fee that the third party charges them. Some people who believe that they can negotiate well with the creditors that is why they do not hire third party to do the negotiations for them. This leads them to saving money, but this should only be done when the credit card owner is sure that he or she can negotiate well with the creditors.
Tips,How,Choose,Between,Debt,S