Filing bankruptcy is a common practice among the U.S. Over 2 million people file for bankruptcy every year. So many families today are swimming in debt, which is not surprising with the amount of credit that is being offered. If you pay your bills, you're given the opportunity to run up more bills. For young people, this is often too much responsibility to handle. Many people choose bankruptcy in order to gain a fresh start.
However, bankruptcy leaves you with a bad record. This makes it harder to buy a house, a car, or any other big-ticket item soon after you have filed for bankruptcy. Mortgage lenders will certainly be more cautious before granting a loan to someone with a history of bankruptcy.
Luckily, there are other choices.
Debt Consolidation
It seems like every other TV commercial is talking about debt consolidation. Why? Well, it's a big market and many people are opting for debt consolidation before taking the plunge into bankruptcy. Before you decide to take this route, you must ask yourself: Will I be able to pay all of my other bills on time and still be able to survive monthly? Failing to pay a debt consolidation loan could cause you to lose your home to a creditor. So, before you decide to consolidate your debt, make sure you can handle the payments. Know all of the facts.
Quick Tip... Shop around for a loan consolidation company. Compare interest rates and company reputation. Get as much information as you can about each potential company so that you will receive the most manageable payment.
Another option is to make a settlement. If possible, it is best to try and pay off your debt in full or to make an arrangement for payments with the creditor. Do not borrow money to pay off your debts. For most people, this only leads them deeper into debt.
Credit Counseling
Credit counseling agencies will contact your creditors and make new payment arrangements on your behalf. Most of them are able to get your interest rate lowered or even have your interest payments stopped.
Some families have found credit counseling to be one of the best solutions for avoiding bankruptcy. It will also give you some breathing room, without creditors calling you off the hook.
However, sometimes bankruptcy is the only option. Personal bankruptcy allows people with overwhelming debt to get a fresh start. Although it will tarnish your credit rating, bankruptcy is sometimes the only choice. In this case, it is important to find a good debt settlement company. As always, researching different bankruptcy companies and options is the best thing you can do.
Find some interesting Bancrupcy Statistics. Alli Ross is the webmaster at the Baby Names Box
Honorably and ethically rid yourself of burdensome debts using the... Read More
The New Year often brings with it a desire to... Read More
Good credit is everyone's dream. A wise use of credit... Read More
Filing bankruptcy is not fun! It is a last resort... Read More
Bankruptcy still remains a mystery in the eyes of many... Read More
Having something tangible to strive towards can work wonders for... Read More
If you have multiple debts, you may well be wishing... Read More
Negotiations with creditors have failed. Repossession is imminent and foreclosure... Read More
No, that's not a misprint. Even though falling interest rates... Read More
Personal debt reduction practices, the steps people take to relieve... Read More
Incredibly, since the changes in the bankruptcy law in April... Read More
Debt management (specifically unsecured) is the first step to taking... Read More
Living with debt is never a good idea if you... Read More
Wholeness requires separation. In order for you to experience yourself... Read More
As vice president of the American Credit Foundation, a nonprofit... Read More
What Is an IVAThe IVA (Individual Voluntary Arrangement) was introduced... Read More
Log onto to a search engine such as google.com and... Read More
When you hear the word "debt", whats the first thought... Read More
Step 1. The purpose of this first step is to... Read More
Feeling stressed by the amount of debts you have? Three... Read More
While driving around your community, you may have seen signs... Read More
I have faced this financial question 8 years ago and... Read More
Want to know if your attitude towards your finances is... Read More
Signing up for a debt management program is easy; it's... Read More
Financing a college education is one of the more expensive... Read More
Credit card debt elimination can be done with a good... Read More
Debt relief is a topic on a lot of consumers'... Read More
Should you be unfortunate enough to face a CCJ ?... Read More
Many Christians feel uncomfortable with the notion of being in... Read More
Is there a way to get out of debt without... Read More
Anyone who embarks on a debt reduction program should know... Read More
Do you have multiple debts? Do you have just one... Read More
If you are considering bankruptcy as a solution to your... Read More
If you have multiple debts, you may well be wishing... Read More
Log onto to a search engine such as google.com and... Read More
Credit counseling is a viable option for those who are... Read More
Who are these people anyway? They viciously harass you and... Read More
Your FICO score or credit score as it's commonly called... Read More
Next to winning the lottery, a debt consolidation loan is... Read More
Recently passed by Congress with overwhelming support, the oddly-named Bankruptcy... Read More
Ask a friend what resolutions they made for 2004 and... Read More
1) Use your AssetsIf you have assets with some significant... Read More
If you have incurred substantial personal debt, consider these options:... Read More
To be out of credit card debt is your dream... Read More
Bankruptcy and Credit - What Happens After Your Debts Are... Read More
No, that's not a misprint. Even though falling interest rates... Read More
Honorably and ethically rid yourself of burdensome debts using the... Read More
Debt is not much fun and when faced with it,... Read More
If your financial worries are preventing you from sleeping at... Read More
It is always possible to negotiate with creditors ? even... Read More
Amy Wright, 34, was extatic when her realtor showed her... Read More
A headline for a retirement annuities flyer declares "Future Secured!"... Read More
Anyone who embarks on a debt reduction program should know... Read More
What is Credit?Credit means that you are using someone else's... Read More
Do you have stacks of unpaid bills?Are you in debt?Are... Read More
Leaving school, getting a new job, or even a raise... Read More
The United States Senate passed a law on March 10,... Read More
Debt consolidation versus debt negotiation are two options that are... Read More
As they stare down at a teetering pile of bills,... Read More
Many Christians feel uncomfortable with the notion of being in... Read More
It has been said that everyday more and more people... Read More
Personal bankruptcy is a legal way to give people with... Read More
Bankruptcy is little more than a smack on the hand... Read More
Educating yourself about the ins and outs of debt negotiation... Read More
Last April, Congress passed the Bankruptcy Abuse and Consumer Protection... Read More
Yes, debt collection tips can help. You may think you... Read More
Debt Relief |