Filing For Bankruptcy - 3 Legitimate Debt Relief Options To Consider Before Bankruptcy - Part-2
Today, People are facing severe financial problems due to the recent strike of recession all over the world.
The increasing rate of inflation and unemployment has compelled them to take help of credit cards to fulfill their daily expenditure.
The extensive use of credit cards has pushed them into troubles because it is easy to use the credit card but at the time of payment, especially when you are facing shortage of fund, people face much difficulty.
If you skip one installment then the outstanding amount increases in no time and continues to increase unless you pay it.
This is the situation where people thought that in order to protect themselves from liabilities, filing bankruptcy is the right choice.
They are wrong because they do not know about its future disadvantages for instance, it requires much legal documentation and the one who files for it is not entitle to apply for the loan up to seven to eight years.
In order to keep the increasing ratio of bankruptcy in control, the federal government has come up with some options which can help them to get rid of the unsecured debts.
The first method is Debt Settlement.
This method can be adopted by those who have credit card debts up to ten thousand dollars.
By hiring the settlement firms, one can get up to sixty percent reduction in the debts.
These settlement companies negotiate with your lender on your behalf and mange to get reduction through negotiations.
The new laws announced by the federal government have prohibited these companies to charge high and upfront fees.
In this way, you can get reduction without spending money and you have to pay the fee after the deal is successfully completed.
The second option is debt consolidation.
This is suitable for those who are using more than one credit card and are paying separate installments for each card.
In this method, you can take a new loan relatively on low interest rate to pay the dues of all credit cards.
In this way, you will get rid of the liabilities of all the cards and you will have to pay only one installment to pay off the new loan.
The third option is debt management.
In this option, the financial guru analyzes your debt position and advice you that how you can pay back your debts efficiently.
The increasing rate of inflation and unemployment has compelled them to take help of credit cards to fulfill their daily expenditure.
The extensive use of credit cards has pushed them into troubles because it is easy to use the credit card but at the time of payment, especially when you are facing shortage of fund, people face much difficulty.
If you skip one installment then the outstanding amount increases in no time and continues to increase unless you pay it.
This is the situation where people thought that in order to protect themselves from liabilities, filing bankruptcy is the right choice.
They are wrong because they do not know about its future disadvantages for instance, it requires much legal documentation and the one who files for it is not entitle to apply for the loan up to seven to eight years.
In order to keep the increasing ratio of bankruptcy in control, the federal government has come up with some options which can help them to get rid of the unsecured debts.
The first method is Debt Settlement.
This method can be adopted by those who have credit card debts up to ten thousand dollars.
By hiring the settlement firms, one can get up to sixty percent reduction in the debts.
These settlement companies negotiate with your lender on your behalf and mange to get reduction through negotiations.
The new laws announced by the federal government have prohibited these companies to charge high and upfront fees.
In this way, you can get reduction without spending money and you have to pay the fee after the deal is successfully completed.
The second option is debt consolidation.
This is suitable for those who are using more than one credit card and are paying separate installments for each card.
In this method, you can take a new loan relatively on low interest rate to pay the dues of all credit cards.
In this way, you will get rid of the liabilities of all the cards and you will have to pay only one installment to pay off the new loan.
The third option is debt management.
In this option, the financial guru analyzes your debt position and advice you that how you can pay back your debts efficiently.
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