Alternatives to Bankruptcy presents the following thoughts on credit card and revolving debt payments. While using credit cards certainly makes our lives much easier, and makes it easier for us to consume sometimes beyond our true limits, the debt that accumulates can become overwhelming. If you are overwhelmed by your debt, contact an attorney and ask about the alternatives to bankruptcy.
It is a lot easier to buy things when there are very manageable monthly payments involved rather than one lump sum payment. You can justify a few extra bucks a month a lot easier than you can justify dropping a few hundred or even a few thousand on something before you even take it home with you. Unfortunately, a lot of people fall victim to this flawed thinking.
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Alternatives to Bankruptcy offers the following information on keeping an eye on your credit score. It is a great idea to frequently check your score for a variety of reasons, including identifying potential identity theft.
Your credit bureau report is used to determine if you will get approved for new credit, what interest rate you will be charged, and even to determine your car insurance rates. Your credit report almost certainly contains errors, so you need to check it periodically so that your credit score can be as high as it should be.
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Alternatives to Bankruptcy offers some thoughts and advice on debt consolidation.
We are living in very tough economic times and it is at times like these that people begin to realize just how much debt that they have and wonder if they are going to be able to keep up on their payments. These concerns grow as items become more expensive and people start losing their jobs. Something that is happening around the United States even as you read this.
For many people, debt consolidation is a viable option as they get further in debt or are unable to pay their current debts. If you are one of those people who are looking for debt consolidation information, then you should read this first and make sure you know exactly what you are getting for your time, trouble, and yes, money.
Debt consolidation means different things to different people. That is because debt consolidation can take more than one form. Firstly, there is debt consolidation through credit counseling services. This is when you can consolidate your credit card debt into one payment made directly to the credit counseling service. They will provide you with extensive debt consolidation information and once you sign on with them they will negotiate with your creditors to eliminate your interest payments and close your accounts. Often they will negotiate smaller payments as well to get your monthly payments into a more manageable place based on your income and obligations. Generally, there is a modest monthly fee for credit counseling services, which are included in your monthly payment.
Secondly, there is debt consolidation by means of credit card consolidation loans. In most cases, this loan is in the form of a home equity loan. Most people with large amount of debt cannot get a personal loan, especially if they have bad credit. However, even if they have good credit, the banks will consider their debt to owe ratio to determine their loan worthiness and too much debt means no loan money. Getting a home equity loan, however, has a down side. It means that until the loan is paid off, you no longer have equity in your home, so perhaps you should find other debt consolidation information before resorting to a loan.
Lastly, there is what is called credit card debt settlements. This is when a company negotiates with your creditors to reduce the amount that you owe to them. The up side here is smaller payments. The downside, however, is the fact that you have to pay the total negotiated amount up front and it is often reported as a settled debt on your credit score, which counts as a negative.
Of course, there is always the option of settling your own debts by using the Internet to find as much debt consolidation information as possible. Many people are capable of working through a system on their own, if they just know how.
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Your Debt and You
Are you overwhelmed by your debt?
Do you have medical conditions that not only leave you feeling ill, tired, fatigued…but furthermore are also creating a real economic hardship in doctors bills, hospital bills, prescription costs and other medical expenses?
Have you recently divorced and struggling with one income?
Have you recently taken a pay cut or working fewer hours as your employer struggles to keep their doors open in a tough economy?
Are you a small business owner and employer finding you business struggling in this economy? Are you unable to keep your business open with the spiraling costs of your overhead versus your dropping sales and profit?
Have you recently lost your job and are blowing through your savings to support your home, your utilities, your car and your bills? Not to mention groceries, gas, and other day in and day out expenses?
Without a doubt, many consumers are simply in over their heads for a variety of reasons. The thought of filing bankruptcy for many of us may bring feelings of shame, inadequacy or even down right fear! Many people simply assume that bankruptcy is an option for the very rich trying to escape their mistakes, or for people who ran up their credit cards without regard for the future of the payments, or for people who are trying to somehow take advantage of the system.
Bankruptcy is rarely any of the above. You need not feel shame or inadequate. Most bankruptcy filings are the result of overwhelming and unforeseen medical expenses. Did you choose to get sick? Hardly. Furthermore, many bankruptcy cases come from a divorce or loss of a job. Did you ask to be laid off? Most likely not.
Bankruptcy may be an viable option for you, to assist you with managing your debt and obtaining a “fresh start” to battle your medical condition with less stress, to find a new job to get back on track with your career and income, and to get back on your feet after a devastating divorce and look to your future with a positive outlook. Bankruptcy can lift the load of worry, fear, and despair from your shoulders so you can focus on your health, your career potential, your family and your life.
There are many options to consider regarding bankruptcy:
Have you discussed this with your loved ones? Do you have a plan that will help you face this together, and with a support system?
Can you attempt to leverage any home equity for a debt consolidation loan? This would pay down your debt and leave you with one payment to make. However, with prices of homes in many markets still going down, many consumers are finding that they have little to no equity or ability to secure a debt consolidation loan.
Have you contacted a debt counseling service? There are non-profit organizations that may be able to assist you in negotiating your debt and/or your interest rates with your creditors to bring down your overall monthly debt payments. However, if you are currently unemployed, this may not be an option as you will need to be able to repay the debt under the new terms…without a steady, ongoing income you may not qualify.
Do you know if Chapter 7 Bankruptcy, Chapter 11 or Chapter 13 is better for you and your total financial picture?
What property and assets do you have that could be liquidated or that you want or need to keep? Have you created a spreadsheet of your debt, your monthly minimum payments, and your assets?
Do you understand how to deal with a bankruptcy as a small business owner? How is your business structured and how will that impact the way you file?
Do you understand how bankruptcy impacts your business, whether you have to close your doors permanently or possibly stay open as debt is reorganized?
Do you understand how bankruptcy will impact your credit score?
Do you know that many future employers will pull your credit score as part of your background check and potentially weigh your credit rating as part of your employment potential?
Do you know if your state’s bankruptcy laws differ from federal bankruptcy laws?
Have you contacted a bankruptcy attorney in your area that can help you walk through the answers to these questions and many, many more?
This website is intended to assist you with the tough questions, as well as provide you with updates, tips, resources and information to assist you in making a sound decision regarding bankruptcy. This website offers broad and general information that may not always apply specifically to your situation, or the bankruptcy laws of your state.
Furthermore, this website will bring to you solutions to debt reduction, management and counseling. There are viable alternatives to bankruptcy, and this website will assist you in exploring ALL of your options. Your finances will dictate much of how you live your life, and how well you live it. These are decisions that will resonate for the rest of your life, so we hope to bring quality information to you so you can make an informed decision. As always, it is recommended that you consult with an attorney to understand all of your options.
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