Whenever a person is in debt, he or she tends to experiment several methods of obtaining debt relief, in order to choose the best way among them all. The most popular methods among them are bankruptcy and debt settlement. Even among those two, most people tend to file bankruptcy as their first step which they do due to their bad knowledge about the debt relief methods and also according to my point of view which is the worst step that a man can ever take.
It is natural that most people file bankruptcy as their first and best method of settling their credit card debt, because it seems the easiest way to get out of credit card debt. It is not the sole solution these customers have, it is just another single option they have among many, but still they tend to go for bankruptcy than even thinking of doing debt settlement. This ideology should be changed, not because it benefits the debt settlement companies, but because it ruins the whole credit history of the debtor.
If you analyzed and see you will definitely understand the negative aspects of filing bankruptcy; though this step looks easy, it completely destroys the credit history of the debtor and also harams the good reputation of the particular person. In addition, bankruptcy filed under chapter 13, the customer may have to pay a monthly installation to the creditors which will obviously be higher than the payment you have to pay for a settlement company. Other than that bankruptcy spoils the credit of the customer for a period of ten years, which is not at all a short period. Thus, although it seems to be the easiest method, the after effects are much more unbearable.
The other popular method is debt settlement, in which the counselors take all the necessary details about the credit cards of the customer and even about the debts in them. And as the next step, after studying the present economic status of the debtor, the counselor discusses with the creditors and somehow manages to obtain a great reduction of the amount the debtor has to pay to the creditor. This payment installations method is extremely fairer than facing the after effects of bankruptcy.
Thus, if you are clever enough to study this case carefully, you will definitely understand by yourself that there is an easy way of getting out of debt without filing bankruptcy. But, although this is our responsibility to show you the correct path, it is your responsibility to chose the best path of relief for your economic problems.