For debt related problems, credit card debt bankruptcy is never the right solution. Rather, it is good news that we have a few options available to choose from in addition to credit card debt bankruptcy.
Although the number of options available is limited, considering any other option first is better than going broke. Before you file for bankruptcy, keep in mind the fact that it can affect your credit report for up to 10 years. And it also becomes a reputation issue for your track record. That is why most people consider bankruptcy the last resort.
Credit card debt bankruptcy can be avoided by using debt settlement options. There are many non-profit debt settlement organizations that provide their services to clients to reduce their debt. You can look them up on the internet, and since you’re not the first to use these settlement options, ask people around you for referrals.
Debt settlement may be more effective if you have maintained a good credit history. Regular bill payments will result in higher credit scores. The best way to have a good credit score is to not buy something you can’t afford in the future.
To reach a settlement agreement, the debt settlement company negotiates with creditors to reduce your debt by as much as fifty to sixty percent. Creditors are also in favor of settlement agreements because this will return some of their money. Whereas for a customer who declares bankruptcy, the creditors gain is zero.
Settlement companies offer their clients free advice. Good companies find good points compelling. But for the deal to be fruitful, try to keep your credit card history clean. If your company can show that its past record is clear, then most creditors will give you a high debt reduction rate. But the registration of a defaulter can lead to a low rate of reduction.
Debt settlement is therefore a much better alternative to late payments. Bankruptcy will only make your life more miserable as your report will be marked and your reputation will be noticeable. No one wants to go bankrupt if they have some other option available. Therefore, why not be wise and not be intimidated by the financial downturn and choose a debt settlement option for the solution?