Reference - Debt Settlement vs.
Bankruptcy
With today's economic difficulties, consumer debt is at an all-time
high. As American's continue to struggle with debt, record numbers of
consumers—nearly 1.6 million in 2003—are filing for bankruptcy. Whether
you’re financial situation is the result of an illness, unemployment,
divorce, or simply overspending, it can often seem overwhelming. If debt
has gotten the better of you, try debt settlement before going the
bankruptcy route.
Debt settlement can help consumers improve their financial situation
and provide immediate relief from creditor harassment. With debt
settlement, you can usually get out of debt with in two to three years
and you typically end up paying back between forty to sixty percent of
what you currently owe!
It is true that bankruptcy is another option for debt relief, but
it’s generally considered the option of last resort. This is because of
its long-term negative impact on your creditworthiness. A bankruptcy
stays on your credit report for up to 10 years, and can hinder your
ability to get credit, a job, insurance, or even a place to live. It is
critical to understand all your options prior to making such a critical
decision. Living debt free takes both hard work and proper planning.
With a proper combination of both, you are sure to get back on the track
to financial freedom.
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