Credit Card Debt Bankruptcy – Why Bankruptcy is Not the Best Way to Eliminate Credit Card Debt
Would you use a gun you have at home to shoot a mosquito? Would you use an axe to kill a bed bug? Why not? No, this is not a joke. The answer to this question will have significant impact on your finances. Surprised? How can killing a mosquito with a gun or shooting a bed bug with an axe change the way you manage your finances?
Well, if you opt for any of the solutions mentioned above, you will suffer a lot of collateral damage. You may successfully kill the bad bug with the axe but you will definitely destroy your bed. You never know where the bullet will go after it hits the mosquito. There is no point in using so much force and energy to cause damage to your own house. In the same way, going in for bankruptcy is go in to only cause more harm to your finances.
There will be a huge impact on your credit score and credit history. However, if you have lost all interest in your credit credibility in the market and if you are prepared for such fall, you should check out some other disadvantages opting for bankruptcy.
The fact that you have made use of the protection of the quote to avoid your debts will work against you when you apply for a new job. There are many individuals who could not get married for very long time because their spouse did not want to marry a bankrupt person. Bankruptcy is admission of inability. Nobody wants to deal with a person who made chicken out. This may be unfair and sad but that is the way the world runs. On the other hand, if you opt for any other solution debt settlement, consolidation or any other solution, you can avoid the public stigma that is associated with bankruptcy.
Further, this solution becomes even more problematic if you are not responsible for your financial crisis. If a certain medical emergency compelled you to use your credit cards irresponsibly and that is the reason we opted for bankruptcy, there would be no special treatment reserved for you. You would be treated no different than a person who borrowed money and tried to cheat others by opting for bankruptcy.
These are small points but will have a significant impact when you have to live with them on a daily basis. All this added to the fact that credit card issuers will always be the last to receive their money when you opt for bankruptcy means that you shall get no support and cooperation from their side as well.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called “Free Debt Relief Networks” that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:
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