Why is it that each and every question involving elimination of credit card debt ends up on these two points only - either debt settlement or bankruptcy.
Are there not any other solutions? Well, the finance industry has many so-called debt relief options that can be very beneficial for those who are not facing any problems or complications whatsoever.
However, if you have lost your job or if you have suffered medical emergency or if you have been forced to misuse your credit card in an irresponsible manner and if you want relief from debt, you either have the option of bankruptcy or you have the option of debt settlement.
A consolidation loan, an interest holiday, a refinancing - these options will work only if the problem is yet to arise and you just want to preempt the same.
However, if you let the problem to crop up, you can be rest assured that you will end up dealing with either of the two options.
Well the fact that you have no other option may make you think that the final decision will be very easy to take.
However, bankruptcy and debt settlement have their advantages and disadvantages.
Choose the wrong one and you will definitely be staring at the specter of huge debt problems, credit history problems, pressure from debt collection agents for a very long time.
Debt settlement involves negotiation with the lenders.
You try to bring your debt down to a manageable level so that the overall amount is easier to repay.
Further, you will request and obtain an installment facility that will help you repay the debts without putting a strain on your finances.
On the other hand, bankruptcy involves approaching the court and confessing that you do not have the capacity to repay the debts on time.
Once this is done, the courts and legal process shall take over.
You will simply have to follow the procedure and the judgment of the court ordering the liquidation of your assets and repayment of the debts to the maximum extent possible will free you from your obligation of debt repayment.
Which options would you choose? Given a choice, you should always choose for debt settlement over and above bankruptcy.
The benefits and disadvantages apart, you can always go in for bankruptcy even after you have finalized the settlement deal.
This means that the question is not mutually exclusive of each other.
You can go in for whichever solution that works for you best.
It is just that you can go in for settlement first to avoid the damaging consequences of bankruptcy on your credit score.
If nothing else works, you can always reverse your decision and wine for bankruptcy.