Debt Settlement vs Bankruptcy

Debt settlement  Why should you consider it before bankruptcy?

Debt is major concern for one and all given the present economic scenario. However, the pertinent question that remains is what the major steps that can be taken in the face of debt to erase it altogether are. This is amongst those financial considerations that need to be contemplated seriously while taking into consideration various other factors. Now, talking about erasing debt, you’re sure to be wondering whether or not it’s really possible to “erase debt”. Well, this is again a frequently debated question too. If you’re practically over your head in debt so much so that you’re unable to pay your bills and getting harassed by collection calls, then it’s definitely time that you took things seriously.

Is bankruptcy the only way out to erase your debt?

Almost everyone would give you the advice that declaring bankruptcy is the best way to erase all your debt and that’s how you can actually manage to get a fresh start all over again. However, there’s definitely another way out given your financially precarious position. You should opt for a professional debt settlement service before going ahead and filing bankruptcy. Debt settlement services also known as debt negotiation services can actually help negotiate with your lenders on your behalf to forgive a portion or the rest of your debt. This can be done for about 40 to 60 percent of your unsecured debt generally. Now it’s blatantly evident that this enables you to get out of debt so much faster.

Why should you opt for the debt settlement process?

There are obvious benefits associated with the debt settlement process that gets you so much closer to erasing debt without really having to declare yourself bankrupt. Read on to find out more about the benefits involved.

  1. You get to eradicate the extra charges: Being in debt obviously means that you’ve managed to rack up quite a handful of late payment fees, excessive interest charges as well as over the limit fees on your unsecured debt. Now this is where a professional debt negotiator can help by eradicating much or practically all of those fees.
  2. You get to avoid any unfair collection practices: This is one major emotional and psychological advantage that most swear by. A professional debt settlement service actually helps you avoid being harassed by any unfair collection calls. The professionals you work with know the rules of the game quite well and they know how exactly the debt collectors think and work.
  3. You can make single payments: This is another major benefit you can enjoy for it simplifies the debt payment practice easily. This is where you become all the more successful in erasing debt while avoiding bankruptcy. The debt negotiators would talk it out with your lenders and arrange a single payment which you might have to deliver as a lump sum amount or perhaps through installments. If it’s a monthly payment scheme, then in that case the money should be accumulated in a trust account from where your lenders should be paid.
  4. You get to avoid bankruptcy: Finally, the greatest advantage remains that you can actually avoid bankruptcy in your quest for erasing debt. You see, with a large percentage of your debt being forgiven, bankruptcy should no longer be considered.

Keep in mind the 4 benefits and go get debt settlement help if you’re really looking to erase your debt.

About The Author

Christina Jones is a financial writer who has enough knowledge on financial topics and loves to write articles on financial topics. She contributes her articles to different blogs, websites and communities so that people can read her posts and gain knowledge on various financial topics. Some articles covered by her are debt settlement dos and don’ts, debt consolidation benefits and the advantages of investing your dollars.

 


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