Filing For Bankruptcy - What Are Other Debt Relief Options Besides Filing For Bankruptcy?
Whenever someone is deep in debt and cannot repay they start fearing filing for bankruptcy.
This is because we hear about bankruptcies all the time in mainstream media.
Even our fiction is filled with characters having to file for bankruptcy.
However there are actually other debt relief options besides filing for bankruptcy.
Bankruptcy has been instilled upon us as one of the worst things that can happen to a person financially.
The movies and books portray stories of people who were very rich but then had to file for bankruptcy because they owed so much.
It is shown as an absolute, the only thing you can do if you cannot repay your debts.
However this is not true, there are many other alternatives which you can pick if you do not want to file for bankruptcy.
The ones which are available for the public are debt consolidation and negotiation.
In debt consolidation what you do is that you replace many debts with one debt.
For instance if you have credit card debts from different accounts you can just get one big loan and use it to pay back all the other ones.
This makes life easier due to two reasons.
The first is that you now only have to manage one debt which would be easier to do than manage many small ones.
The other reason is that your interest rate will be lower because this loan is fresh.
The other choice present is debt settlement.
Settlements are becoming popular now due to the conditions of the economy.
What happens in a settlement is that you go to your creditor and negotiate with them.
You convince them that you cannot pay them back and they will have to lower the amount due or you will default.
Then you talk about how much they can lower the amount.
Due to its increasing popularity there are now many companies which will help you with settlement.
But be wary, not all of these companies are legitimate.
Some of them have a record of usurping money and asking for too much money.
Then there are companies who are inexperienced and thus cannot give you good help.
If you want to avoid getting these type of companies then what you need to do is go to a relief network.
These networks are made to help the consumer find the right kind of companies.
This is because we hear about bankruptcies all the time in mainstream media.
Even our fiction is filled with characters having to file for bankruptcy.
However there are actually other debt relief options besides filing for bankruptcy.
Bankruptcy has been instilled upon us as one of the worst things that can happen to a person financially.
The movies and books portray stories of people who were very rich but then had to file for bankruptcy because they owed so much.
It is shown as an absolute, the only thing you can do if you cannot repay your debts.
However this is not true, there are many other alternatives which you can pick if you do not want to file for bankruptcy.
The ones which are available for the public are debt consolidation and negotiation.
In debt consolidation what you do is that you replace many debts with one debt.
For instance if you have credit card debts from different accounts you can just get one big loan and use it to pay back all the other ones.
This makes life easier due to two reasons.
The first is that you now only have to manage one debt which would be easier to do than manage many small ones.
The other reason is that your interest rate will be lower because this loan is fresh.
The other choice present is debt settlement.
Settlements are becoming popular now due to the conditions of the economy.
What happens in a settlement is that you go to your creditor and negotiate with them.
You convince them that you cannot pay them back and they will have to lower the amount due or you will default.
Then you talk about how much they can lower the amount.
Due to its increasing popularity there are now many companies which will help you with settlement.
But be wary, not all of these companies are legitimate.
Some of them have a record of usurping money and asking for too much money.
Then there are companies who are inexperienced and thus cannot give you good help.
If you want to avoid getting these type of companies then what you need to do is go to a relief network.
These networks are made to help the consumer find the right kind of companies.