Bankruptcy is not a good way to come out of debt if you can afford other debt relief options to help you out with your financial problems.
No matter which chapter of bankruptcy you qualify for it is still not a good way to pay off the debt that you owe to your creditors.
It is better to cut down on your spending habits than file for bankruptcy.
1.
If you are not being able to take control of your financial problems then it is better to get some financial advice through credit counselling.
They educate their customers on how to save and avoid bankruptcy.
This method does not have a negative impact on the customer's credit report.
2.
If you have been a good customer and have always made payments on time then it is possible for you to get a lower rate of interest.
Creditors can negotiate on the interest rates and can generally give 2 % rebate on the interest rates.
3.
It is also possible for the customer to negotiate and get the penalty charges removed from his account.
Many creditors will negotiate on these terms.
This will bring down the total balance that is due on your account.
4.
Consolidate all your card loans into one.
Taking out one loan with a lower rate of interest in order to pay off all other loans will save you a lot of money.
People generally opt for debt consolidation for lower interest rates of fixed rate of interest or just for the ease of serving only one loan rather than many loans.
5.
Debt settlement can help the customer in reducing the total amount of the loan through negotiations with the credit card companies.
As much as 50 % of the debt amount can be reduced through this method.