When you have a big loan to take care of and your income does not allow you to balance both, it can become quite a complicated situation. When you are running out options, you would be happy to know that there are ways to get out of debt. Traditionally there are two ways to fight debts: Filing bankruptcy or debt settlement.
Here are some disadvantages of bankruptcy that you should be aware of:
a)This process can blow off your credit ratings that can make it virtually impossible for you to avail loans in future.
b)You can be entitled to go for bankruptcy once in 6 years, which further narrows down your options.
c)Remember that all your debts are not covered under bankruptcy. Some debts still holds good even after you file for bankruptcy.
d)It is just a temporary relief for you and your property that is non-exempted can be auctioned by the trustee.
In comparison to the above points here are some benefits of debt settlement:
a)Your credit ratings remain secured and there is not remark left of any settlement done.
b)A big part of your outstanding amount can be wiped out and you will have to pay a small percentage of the principal sum provided that both parties agree to it.
c)Your current accounts might be untouched and you can continue using them as usual.
d)The Interest rates can come down by a great extent further giving you a bigger relief.
e)The penalty amounts can also be waived off.
f)Your financial strategy can take a good shape and you can have a better control over your expenses.
So, after you have been through all the aspects of debt settlement and filing for bankruptcy, it is evident that you would definitely go for settlement process. However, make sure that you verify the authenticity and reputation of the company that you approach for settlement process.
It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified. They are free to use and offer helpful debt relief advice. Free Debt Advice .