Debt Relief Tips – Avoid Bankruptcy and Eliminate Credit Card Debt

bankruptcy credit card debt
by marsmet461

Debt Relief Tips – Avoid Bankruptcy and Eliminate Credit Card Debt

Human beings are those species that have an infinite series of desires few of which are necessary for the human survival for the rest are just to have a better life style. We all know that everything has a cost. This cost can be interpreted as the required effort or money that one needs to have to fulfill his needs and desires. Now no matter what you do for a living, you always get short of money.

To compensate for the shortage of money one of the several options available is the use of the credit card. A credit card is a card issued by the bank that can be used on almost all stores today. There is a credit limit associated with each of these cards and within these limits you can buy whatever you want whenever you want and pay for them at the end of the month without any interest. In case you fail to pay back the loan on time, an interest in attached to the loan. This interest keeps getting bigger you take more and more time to repay the money.

Slowly yet eventually what happens with just about everyone is that the amount of money to be returned becomes so big that it becomes impossible for them to return. When such situation arises, one has two options, the first being to declare bankruptcy while the second is to go for debt settlement. Let’s look at the first option first. Suppose you declare bankruptcy, the investor gets nothing and you cannot reapply for a loan for quite some time usually ten to fifteen years. The only plus point that this option has is that you debts get cleared at that very moment.

Now considering the option of debt settlement in which one has to return a very small fraction of money back to the investor, not only does all your debt gets cleared but with that you can reapply for loan anytime in the future as well.

There is only one small requirement for debt settlement and that being that the amount of loan that you have to return should be more than ten thousand dollars. A very common question that arises at these moments is that why a company would accept less money and clear all your debts? Well consider that in bankruptcy the company gets nothing while in debt settlement it getting at least something so obviously something is better than nothing.

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