Bankruptcy Vs Negotiating Debt - Why Settling Your Debt May Be Your Best Option


You need to weigh your options before you make any decisions because you might make the wrong one and regret it later. The reason that most consumers take the bad choice is usually because they don't have enough information about other options. Seeing that you are looking for alternatives to bankruptcy, you are trying to get information about more than one option before you decide which way to clear your debt and that is a good thing.

Bankruptcy is an option or at least it used to be one before you heard about debt relief options. Now bankruptcy is just something that you should avoid and for good reason. It involves a lot of costs and also a lot of paper work, not to mention the high stress level and low credit score that you will be left with. This option is not as popular as it used to be and consumers prefer to just keep as a last resort in case all other options fail.

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Settling your debt can be much more profitable although at first glance you will see that this option will only eliminate half of your debt while bankruptcy eliminates it all. The fees of a debt settlement company are much more affordable and you can pay them in a few monthly installments. Also, you no longer have to pay high interest rates for the remaining debt and you can clear it a couple of years. This period is much less stressful than bankruptcy and you don't have to deal with collection agencies. Once you pay the creditor, your credit score will go back to normal and you can consider getting another loan when you need one.

Negotiating debt has been made a lot easier with the help of the stimulus money plan and also with the help of tax breaks granted by the government for amounts which disappear after you negotiate your debt. Forget about bankruptcy because this is not the time to spend your money on expensive lawyers and waste time in courts proving that you are unable to pay your debt. Use debt negotiations and pay less.


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