Avoid Bankruptcy For Unsecured Deb
It is always better that you avoid bankruptcy for unsecured debt. This is because of the fact that once you file for bankruptcy, you will face future financial troubles which can make your life a misery. What kind of problems are you likely to face? The problems that you will face are mentioned below:
Your credit score goes down and you lose credibility.
You fail to get further credit for the coming 7-10 years because of the fact that the record of bankruptcy filing continues to sow up on your credit history for that period.
You will become a sub-prime consumer after the period of 7-10 years. This means that you will be able to borrow further credit from the lenders after that period but the rate of interest that will be charged will be greater than the normal market rates of interest.
It is because of these reasons that you are advised to avoid bankruptcy for unsecured debt. But, are their other alternatives that can help you to get rid of the credit card debts that you have? Yes, there are! However, the most widely used method is the method of debt settlement. This method makes sure that it avoids the problems which generally appear after a person files for bankruptcy and at the same time you can eliminate you credit debt by at least 50% and up to 70%. The next part of the article explains the method. Keep reading…
Debt Settlement as bankruptcy alternative to combat credit card debt: Settlement requires that the total debt that you have must be at least $10K. Also, the due needs to be consolidated in one place. After you fulfill these two conditions, you must hire a professional settlement company that has immense knowledge of the financial system in the economy. The professional negotiator from the company will advise you to stop paying the creditor. This is needed to prove that you are in a financial trouble. After you stop paying the lender, it will wait for 90-120 days and then sell off the debt to a collection agency for a mere 20-30 cents on every dollar. The negotiator then contacts the creditor with a new offer of 30-50 cents on the dollar. The lender will usually accept the deal because of the fact that the deal will mean 100% return on investment for the collection agency and will therefore eliminate the debt that you have by at least 50% and up to 70%.
This is how you can combat credit card debt with bankruptcy alternative and avoid bankruptcy for unsecured debt.
Debt settlement is a viable option to filing bankruptcy and is becoming increasingly popular amongst Americans with over $10k in unsecured debt. Creditors are ready to negotiate. You can literally eliminate 50% of your unsecured debt with a settlement. Check out the following link to locate legitimate debt help in your state.
