Considering Debt Solutions vs Bankruptcy

Consumer debt ballooned over the past ten to fifteen years, primarily due to the ease of obtaining low interest rate loans, and consumer’s excessive use of home equity line of credits due to soaring home prices.  With credit so freely available, regardless of credit risk, consumers mounted significant credit card and other debts.  When spending outpaces savings, it often leads to bankruptcy, however with new laws regarding bankruptcy, it has become harder to file, and costs a lot more money.

With a greater number of people unable to qualify for bankruptcy, nor willing to suffer the consequences of filing, they are on the lookout for different options.  Debt consolidation programs like Credit counseling and debt reduction programs like debt settlement help consumers shed debt without the lasting effects of bankruptcy.  These programs are built around recommendations provided by credit counselors based on individual needs.  Once a customized plan is in place, the debt solution company works directly with the consumers creditors to put the plan in action.

Although entering bankruptcy seems easy, more often than not it is not the case as a bankruptcy remains on your credit score for seven years.  A debt reduction program can leave you debt free within two to five years, and does not affect your credit as adversely as bankruptcy.  If you are able to enter a debt consolidation program like credit counseling, you also will be debt free within two to five years, but entering this program will not negatively affect your FICO score.

Do you feel like you are running out of financial options, and facing mounting debt?  Call now and speak with one of our friendly debt experts.  In just fifteen minutes you can have a financial plan to be debt free.