You Don't Have To Declare Bankruptcy To
Deal With Your Debts
Considering filing bankruptcy? If your
finances are in ruins and you're considering filing bankruptcy, there's
a few things you should know.
Bankruptcy is not your only option. Millions
of people credit is devastated by bankruptcy every year. Though filing
a Chapter 7 Bankruptcy will clear you of any obligation to creditors, it
is devastating to your credit and will ride your credit report for ten
years.
There are several alternatives to bankruptcy
depending on your current situation. You may consider:
Debt Consolidation- Debt Consolidation
is an easy and timely alternative. A Debt Consolidation Counselor will
evaluate your current situation and past debt and develop a budget for
you.
They will negotiate payment options with
your creditors and simply provide you with the alternative to make one
easy monthly payment to them and they will disburse the payment among your
creditors. The benefits include:
* Usually, a lower monthly payment
* Lower percentage rates
* Debt payoff in a timelier manner
* Less contact from creditors or no contact
from creditors
* You will be able to keep your credit
at satisfactory standards versus the harsh impact a bankruptcy would have
on it
* You're able to obtain new credit
* And with the money you save with the
advantage of a lower monthly payment plan you can contribute to a Savings
Account or Retirement Account
The above benefits are just a few of
the benefits of Debt Consolidation versus Bankruptcy.
Another alternative is a Personal Loan
or Debt
Consolidation Loan. This is one large
loan to pay off smaller loans or debts. With one large loan, you will normally
have a lower percentage rate and a longer pay off period. The benefits
include:
* The ability to pay off debts in full
* No more harassing phone calls from creditors
* Your credit will be saved from derogatory
accounts and collections * Low percentage rate
However, in order to obtain a Personal
Loan or Debt Consolidation Loan you will need satisfactory credit. Though
there are alternative to filing bankruptcy; in some cases, bankruptcy is
the only option.
Before deciding whether to file bankruptcy
or consolidate, consult a financial advisor. He or she should be able to
give you advice after evaluating your situation and current credit standings.
John Williams
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