There are many persons who are of the opinion that debt settlement is a fancy solution that is only going to provide more relief to the service provider in the form of better profits.
On the other hand, they feel like bankruptcy is a safer option which will provide guaranteed results.
Well, there is no such thing as permanency in the world of finances.
What was a good yesterday may be good today but may become very bad tomorrow.
Hence, you should consider the surrounding circumstances before you take a final decision.
Debt settlement makes fiscal sense primarily because lenders are prepared to offer the same today.
Ten years ago, they were not ready to talk of a settlement of the principal amount owed with their unsecured credit card holders.
Today, they are not only prepared to talk of a settlement but they are actually prepared to waive more than 50% of the total amount owed.
In such a scenario, to blindly continue with bankruptcy and to ignore all other options is not a smart move.
Further, there are some advantages that debt settlement offers which no other solution offers.
For starters, a settlement will reduce the total amount owed by a significant percentage without permanent damage to your credit report.
Of course, the phrase-settled-will definitely have a negative impact on your credit history.
However, unlike a bankruptcy, it will not become a part of your public record.
Once the information becomes a part of your public record, it cannot be remove for the next 8-10 years.
This means that the mention of bankruptcy cannot be removed for the next 10 years while debt settlement, using negotiation and other credit repair tactics and strategies, can easily be wiped off your report.
Not only do you enjoy the benefits but you also do not have to suffer the long term consequences of such a debt relief option.
Another advantage that debt settlement offers over a bankruptcy is that you enjoy quick and immediate relief without any uncertainty.
You just have to convince your lender that you deserve 50% to 70% discount.
On the other hand, you will have to convince the court that you qualify for chapter 7 bankruptcy, which will help you escape your unsecured debts and not the chapter 13 bankruptcy which is nothing but the state sponsored debt management plan.
If you are offered the latter option, you have no choice but to rough it out for the next five years even as your finances woes from bad to worse.
A settlement, in this regard, is a more convenient and practically beneficial option.
On the other hand, they feel like bankruptcy is a safer option which will provide guaranteed results.
Well, there is no such thing as permanency in the world of finances.
What was a good yesterday may be good today but may become very bad tomorrow.
Hence, you should consider the surrounding circumstances before you take a final decision.
Debt settlement makes fiscal sense primarily because lenders are prepared to offer the same today.
Ten years ago, they were not ready to talk of a settlement of the principal amount owed with their unsecured credit card holders.
Today, they are not only prepared to talk of a settlement but they are actually prepared to waive more than 50% of the total amount owed.
In such a scenario, to blindly continue with bankruptcy and to ignore all other options is not a smart move.
Further, there are some advantages that debt settlement offers which no other solution offers.
For starters, a settlement will reduce the total amount owed by a significant percentage without permanent damage to your credit report.
Of course, the phrase-settled-will definitely have a negative impact on your credit history.
However, unlike a bankruptcy, it will not become a part of your public record.
Once the information becomes a part of your public record, it cannot be remove for the next 8-10 years.
This means that the mention of bankruptcy cannot be removed for the next 10 years while debt settlement, using negotiation and other credit repair tactics and strategies, can easily be wiped off your report.
Not only do you enjoy the benefits but you also do not have to suffer the long term consequences of such a debt relief option.
Another advantage that debt settlement offers over a bankruptcy is that you enjoy quick and immediate relief without any uncertainty.
You just have to convince your lender that you deserve 50% to 70% discount.
On the other hand, you will have to convince the court that you qualify for chapter 7 bankruptcy, which will help you escape your unsecured debts and not the chapter 13 bankruptcy which is nothing but the state sponsored debt management plan.
If you are offered the latter option, you have no choice but to rough it out for the next five years even as your finances woes from bad to worse.
A settlement, in this regard, is a more convenient and practically beneficial option.
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