What other alternatives exist to discharge debts besides bankruptcy?
Specifically, there are three alternatives to bankruptcy that can be used to address credit card issues. These alternatives are listed below.
1. Settlement and removal
According to the majority of people, this option yields the best results, so many of them favor it over the alternatives. Debt settlement does not make your payment terms simpler. It reduces your payments, so you must pay the credit card company a lesser amount. Let me give you an example. Consider that you have been delinquent on your credit card payments for six months. During this time period, your delinquent balance reaches $40,000.00. Such a large sum is nothing short of a catastrophe. Even an average settlement agreement would result in a fifty percent reduction. If fifty percent of your dues are eradicated, you will be left with 20,000 dollars.
Your settlement consultant will file for a payment plan with installments. The more time you are given to pay, the simpler it will be for you to do so.
Debt consolidation rather than bankruptcy
As a result of combining your debts, debt consolidation enables you to pay less. This means that even if you use ten credit cards, you will only receive one monthly statement. Through debt consolidation, all of your obligations are added together, and then a certain amount is deducted as a discount.
Why should you avoid declaring bankruptcy?
In addition to examining alternative relief options, you should understand why bankruptcy is not a primary solution. The straightforward explanation is that bankruptcy carries a significant disadvantage. If you declare bankruptcy, your credit rating is ruined. Therefore, avoid declaring bankruptcy.""
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