There is a place where credit scores are dropped to the bottom of the barrel in the blink of an eye and the drop of a gavel.
Credit scores don't stay down there for a little while; they stay down there for years! Sure, bankruptcy court is a way out from under crushing credit card debts but do the benefits outweigh the consequences? That is what one should ask their selves before jumping into bankruptcy court.
However, there is another way.
Bankruptcy court can be avoided and the burden of heavy credit card debt can be relieved at the same time.
Debt settlement is a more advantageous route than bankruptcy.
What is debt settlement? That is when credit card companies are willing to negotiate with large credit card balances and reduce the balance up to 50%.
They are also willing to negotiate with the lowering of high annual percentage rates and annual and monthly fees.
The debtor has but to ask.
This is a more preferential choice than bankruptcy, which has long lasting consequences.
Some examples of this would be credit reporting agencies keeping the bankruptcy on their files up to 7 years.
Lenders shy away from clients that have filed bankruptcy and credit scores remain low for many YEARS to follow.
On the other hand, a settlement allows the consumer to eliminate up to 50% of their credit card balance as well as lowering the annual percentage rate.
Lenders are more likely to negotiate when bankruptcy court is in the balance.
Credit card companies are in the business to make money and they would be more satisfied with collecting half the outstanding balance in a debt settlement than getting none in a bankruptcy decree.
In the long run, debt settlement is a much more advantageous move for the debtor as their credit score may only slightly drop with the settlement.
Bankruptcy, unfortunately, will drop the credit score to the bottom and holds it down there for a very long time.
Credit scores don't stay down there for a little while; they stay down there for years! Sure, bankruptcy court is a way out from under crushing credit card debts but do the benefits outweigh the consequences? That is what one should ask their selves before jumping into bankruptcy court.
However, there is another way.
Bankruptcy court can be avoided and the burden of heavy credit card debt can be relieved at the same time.
Debt settlement is a more advantageous route than bankruptcy.
What is debt settlement? That is when credit card companies are willing to negotiate with large credit card balances and reduce the balance up to 50%.
They are also willing to negotiate with the lowering of high annual percentage rates and annual and monthly fees.
The debtor has but to ask.
This is a more preferential choice than bankruptcy, which has long lasting consequences.
Some examples of this would be credit reporting agencies keeping the bankruptcy on their files up to 7 years.
Lenders shy away from clients that have filed bankruptcy and credit scores remain low for many YEARS to follow.
On the other hand, a settlement allows the consumer to eliminate up to 50% of their credit card balance as well as lowering the annual percentage rate.
Lenders are more likely to negotiate when bankruptcy court is in the balance.
Credit card companies are in the business to make money and they would be more satisfied with collecting half the outstanding balance in a debt settlement than getting none in a bankruptcy decree.
In the long run, debt settlement is a much more advantageous move for the debtor as their credit score may only slightly drop with the settlement.
Bankruptcy, unfortunately, will drop the credit score to the bottom and holds it down there for a very long time.
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