Tuesday, 21 January 2014

Debt Relief Or Bankruptcy – Which Is The Better Option For A Debtor?

Posted at  09:27  |  in  Debt

debt relief or bankruptcy
If you’re a debtor who has been drowning in a sea of credit card debt, you must be oscillating between seeking debt relief from a company and filing bankruptcy. While you may think that bankruptcy offers you a fresh financial start, you might overlook the pitfalls of the same with regards to your credit score. Bankruptcy stays on your credit report for the next 7-10 years and mars all your efforts to take out new lines of credit at an affordable rate. In order to alleviate the bad effect on your credit score, you have to make sure you know the benefits of seeking help of debt relief options before taking the plunge into filing bankruptcy. You may read on the concerns of this article to know more on whether to file bankruptcy or get help of a debt relief option.
 
Seeking help of a debt relief option – What benefits can you reap?

If you’re eager to get help of a debt relief option, you should be aware of the benefits that you may reap from such professional options. Here are some that you may consider.

1. You get professional help
: It is only when you seek help of a debt relief option that you get professional help from an expert who specializes in offering debt help to the hapless. He will take into account your present financial situation and then offer you advice accordingly.

2. Negotiations on your behalf: Whether you seek help of a debt consolidation company or a debt settlement company, the debt consultant will take on the responsibility of convincing your creditors about reducing the interest rates and the monthly payments. Since you don’t need to deal with your creditors, you can sit back and enjoy while your consultant works on your behalf.

3. Accepts your payments: You can then start making the single monthly payments and deposit them to the debt consultant who will in turn disburse off the payments to your creditors. This task of taking your payments and distributing them among your creditors can also be done without taking much stress.

4. Payments are reported to the bureaus: The consultants even report your payments to the credit bureaus and thereby help increase your score. You just have to keep a tab on your credit score.

Filing bankruptcy – A word of caution

If you still don’t feel that you should get help from the debt relief options, you may file bankruptcy. But before you take the final step, you should be aware of the fact that it is a legal process that drags you to the court and leaves you being called a bankrupt. You should therefore take caution if you want to file for bankruptcy and get help of an attorney who can help you take the right steps.

Hence, you can easily be able to decide between debt relief options and bankruptcy after going through the concerns of this article. Make an informed decision so that your finances don’t suffer due to mistakes of your own.

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About Author

Jimmy Simond is founder of wallstreetsfinancenews.com he share his immense knowledge of finance in this blog. You can follow him on Google+.

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