Debt Settlement Vs Filing Bankruptcy - A Debt Relief Comparison
I hope you will enjoy reading an article where I will present you the pros and cons of these two main debt relief options, we will see what they have in common and what makes them different.
I hope that at the end of this you could make your decision much easier and get help from the one you chose.
If you came across this, you are probably in deep debt and have decided not to make any decision without the proper knowledge.
Let's start with the pros and cons regarding bankruptcy.
Well, there aren't that many good things about this option; you can clear all your debt without worrying about losing your belongings if the debt is unsecured.
Some of the disadvantages can be that the process can cause a significant amount of stress, there is a lot of legal documents needed, there are high costs regarding juridical representation and after all this is done, you will still remain with a low credit score that will cause problems in the future.
Debt settlement has several strong points; the most predominant is that it reduces your debt to half; this is the greatest thing you can imagine right now.
Also, if you hire a debt settlement company you will not have to worry about the paperwork because they will take care of it so that you are not as stressed as you would have been with bankruptcy.
A third advantage is that you can pay the remaining sum at low interest rates and you can clear your debt in three years.
Although these are great things indeed, we have to mention that debt settlement also comes with some week points.
Even if you can get a 60% reduction, you will still have to pay the other 40%, also you can only use debt settlement if you have unsecured debt of more than ten thousand dollars.
And during the process you will probably receive several phone calls from collection agencies.
You are the jury and only you can make the call regarding one of these two options; from my point of view, the scale is tipped towards debt settlement.
I hope that at the end of this you could make your decision much easier and get help from the one you chose.
If you came across this, you are probably in deep debt and have decided not to make any decision without the proper knowledge.
Let's start with the pros and cons regarding bankruptcy.
Well, there aren't that many good things about this option; you can clear all your debt without worrying about losing your belongings if the debt is unsecured.
Some of the disadvantages can be that the process can cause a significant amount of stress, there is a lot of legal documents needed, there are high costs regarding juridical representation and after all this is done, you will still remain with a low credit score that will cause problems in the future.
Debt settlement has several strong points; the most predominant is that it reduces your debt to half; this is the greatest thing you can imagine right now.
Also, if you hire a debt settlement company you will not have to worry about the paperwork because they will take care of it so that you are not as stressed as you would have been with bankruptcy.
A third advantage is that you can pay the remaining sum at low interest rates and you can clear your debt in three years.
Although these are great things indeed, we have to mention that debt settlement also comes with some week points.
Even if you can get a 60% reduction, you will still have to pay the other 40%, also you can only use debt settlement if you have unsecured debt of more than ten thousand dollars.
And during the process you will probably receive several phone calls from collection agencies.
You are the jury and only you can make the call regarding one of these two options; from my point of view, the scale is tipped towards debt settlement.