Why is Bankruptcy Not the Right Solution? Just Look at Debt Settlement Instead
Once you fall in to a debt trap or financial crisis, it will seem as if it is impossible to escape bankruptcy or huge negative debt on the credit score.
In both cases, the damage caused is long term.
It would not be incorrect to say that bankruptcy causes permanent damage to your finances.
Further, the process of recovering from negative credit score is a very long one.
There are numerous obstacles that have to be crossed and not all individuals will be in a position to overcome this problem.
That is the reason why there are many persons who start suffering the moment a debt crisis occurs and continue to suffer until the next generation comes up and takes over.
If you do not want to end up as such an individual, you should take some innovative measures to tackle the problem.
One of the biggest problems with bankruptcy is that all your debts are written off and you are left at zero point.
Why is this bad? Having zero debt may be a good thing from perspective of debt control.
However, having zero debt is a very bad thing from the credit score point of view.
Zero debt means that you will have zero opportunity to repay any debt.
This means that your chances of overcoming the problem come down drastically.
You will not get loan at affordable rates.
Non repayment of a loan will mean that you will not have the opportunity to prove to your lender that you have become disciplined in financial matters.
Opting for high interest loans is one option but that puts you at higher risk of defaulting on the loan amount.
All this means that you will box yourself in a tight corner with absolutely no way to escape.
In the financial world, ending up with an option that leaves you very little room to maneuver is very dangerous.
Years may pass by and you will still end up searching for that right loan to use to improve your credit score.
Making use of a prepaid credit cards and secured cards is one option.
However, would it not be better if you had a solution that waived a significant portion of your debt but still left enough in your hand to repay and impress your creditors all over again? That is exactly what debt settlement does.
When you get a 70% waiver, your finances automatically improve.
When you repay the balance 30% on time, your credit score will also improve.
It's a win win situation for all.
In both cases, the damage caused is long term.
It would not be incorrect to say that bankruptcy causes permanent damage to your finances.
Further, the process of recovering from negative credit score is a very long one.
There are numerous obstacles that have to be crossed and not all individuals will be in a position to overcome this problem.
That is the reason why there are many persons who start suffering the moment a debt crisis occurs and continue to suffer until the next generation comes up and takes over.
If you do not want to end up as such an individual, you should take some innovative measures to tackle the problem.
One of the biggest problems with bankruptcy is that all your debts are written off and you are left at zero point.
Why is this bad? Having zero debt may be a good thing from perspective of debt control.
However, having zero debt is a very bad thing from the credit score point of view.
Zero debt means that you will have zero opportunity to repay any debt.
This means that your chances of overcoming the problem come down drastically.
You will not get loan at affordable rates.
Non repayment of a loan will mean that you will not have the opportunity to prove to your lender that you have become disciplined in financial matters.
Opting for high interest loans is one option but that puts you at higher risk of defaulting on the loan amount.
All this means that you will box yourself in a tight corner with absolutely no way to escape.
In the financial world, ending up with an option that leaves you very little room to maneuver is very dangerous.
Years may pass by and you will still end up searching for that right loan to use to improve your credit score.
Making use of a prepaid credit cards and secured cards is one option.
However, would it not be better if you had a solution that waived a significant portion of your debt but still left enough in your hand to repay and impress your creditors all over again? That is exactly what debt settlement does.
When you get a 70% waiver, your finances automatically improve.
When you repay the balance 30% on time, your credit score will also improve.
It's a win win situation for all.
Source...