Just Say NO To Filing Bankruptcy
Many people are facing the possibility of filing for bankruptcy. Sadly, many people who are in this position have been given bad or poorly explained credit advice and are wondering if there are any other alternatives to going down the bankruptcy road. There are options available to keep your good name and pay your debts.
Should I avoid Bankruptcy?
To begin with, filing for bankruptcy is a personal decision and one that can only be made by the individual in debt. Although only the individual can make this decision, there are people or companies out there that will discuss options and help debtors come to an educated decision whether to file for bankruptcy or to avoid it. A non-profit organization is the best avenue. Beware of companies charging outrageous fees for their services, as often they are only interested in making money from those in dire financial straits.
Often creditors harass those who are facing financial ruin to make their payments, this is because that is the only weapon they have. These threats can further add to a debtor’s confusion and stress. There are some simple things to keep in mind about debtors and who you should be paying first and who can wait. Make a priority list of the debts you should be concentrating on. Depending on your situation, if you want to keep your home and main vehicle, than you should concentrate on these two debts over your credit card or medical bills.
There is a good reason for choosing to pay other bills over medical and credit card debts. In order to take property from a debtor in the form of assets or possessions, these creditors must first take a debtor to court before they can take their property or possessions. Debts such as fines, alimony, child support, income taxes and student loans on the other hand don’t need to go through this process. By filing for bankruptcy it is likely these debts will still remain.
Trying to get creditors to give you a break should not be the deciding factor in choosing to go down the bankruptcy road. Even though this approach may bring temporary relief from lawsuits and arguments with creditors, bankruptcy is only a short tem solution. Once bankruptcy has been filed the person will be no better off than they were before. In hindsight, by avoiding bankruptcy, a person can sort out their affairs and come out a little better off than if they had chosen to file for bankruptcy.
Debt Management, How can I avoid Bankruptcy?
One of the first methods that should be used when trying to manage debt is to contact the people that you owe money to, for instance, financial institutions and credit card departments. Explain your current situation to them and see if an arrangement can be made to reduce your payments or waive late fees until you have caught up on payments.
If this fails, don’t be afraid to use the power of a good threat. Write letters to all of the creditors that money is owed to and tell them that you are likely to have to file for bankruptcy. Often the companies will try to work something out with their debtors or take less money than go to the trouble of taking debtors to court or having the debt completely wiped out during bankruptcy.
Is A Consumer Credit Counseling Service The Answer For You?
Another way to avoid bankruptcy and work on better debt management is to find a good Consumer Credit Counseling Service. This service will usually be a non-profit organization that will work with you and your creditors to find a solution or a better payment plan that will suit your finances.
Keep in mind the CCC is good for quieting your creditors, removing late fees, and lowering interest payments. If you have an old debt that hasn’t been collected on for a while, you might want to contact an aggressive debt consolidation company. They maybe able to negotiate as much as 60% off your original debt.
By consolidating your debts into one loan you can reduce the number of creditors and fees that you will be responsible for. Be aware of the consolidation loan policies on transferring money from other sources to the loan, as this can sometimes be costly. Often it is possible to borrow against your home to pay debts in this manner, although this can be risky at times as you may face loosing your home if you can’t make the payments.
The other option that you may be able to exercise is to sell off your assets that have value and pay that amount off on your debts. This may seem like a difficult option, although, if you are filing for bankruptcy, it is likely you could loose all of your assets anyway.
Bankruptcy is a process that is best avoided. If a debtor does decide to file for bankruptcy, it should be because they are left with no other option. The debtor should also be aware of the debts that cannot be wiped out by the bankruptcy process, even then a debtor seeks the help of a Credit Counseling Service before proceeding. For more articles like this bookmark www.AlternativesToBankruptcy.net
Author: Sherry Evans
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Reestablishing yourself as a respectable borrower following bankruptcy can be difficult, but thousands of people are working on the same goal right now. Because of the difficult economy that we are all now a part of, there are many folks who have been forced to file bankruptcy in order to protect their most valuable asset - their home. Even non-homeowners who have assets to protect have been forced to file bankruptcy and are now in the process of rebuilding their financial future. You, too, can rebuild you credit from scratch - with perseverance and diligence, your future can be brighter than ever once your bankruptcy is discharged.
Common Products To Improve Your Credit After Bankruptcy
There are many types of loans that you might immediately qualify for once you have had your bankruptcy discharged. Although bankruptcy is a negative item on your credit report, lenders also know that your slate is wiped clean and you have no outstanding debt. Because you now owe nothing to anyone, you show a great potential to be able to repay them when they loan money to you or extend credit for your use.
Automobile Loans
You might consider taking out an automobile loan after bankruptcy. An automobile loan can be a great way to rebuild your credit and is one of the easiest loans to get for borrowers with your history because the lender has security interest in something of value when loaning you money to purchase an automobile - the automobile itself stands as collateral for the loan. You can also apply a down payment towards the purchase of your automobile - any type of down payment will make your loan application more approvable.
Personal Loans
Personal loans that are secured by a cosigner are also readily available to those who just come out of bankruptcy. When applying with a creditworthy cosigner, the lender will look at the credit history of your cosigner as well as your credit history to make a determination about whether or not to loan you money. Having a cosigner for your personal loan after bankruptcy will not only improve your chances of getting the loan, but also reduce the amount of interest charges that you will pay over the term of the loan as well.
Secured Credit Cards
Secured credit cards provide a wonderful means for you to rebuild your post-bankruptcy credit also. Secured credit cards are issued in the amount that is equal to the deposit you have placed with the issuer when you receive the card. You can get a secured credit card in amounts up to $10,000 easily.
Online Lenders Provide Additional Savings
All of these financial products can be obtained with ease by using the services of online lenders. Online lenders have higher rates of approval due to the competitive lending environment that can be found on the Internet. In addition, because online lenders are eager to draw in new borrowers, there are additional savings to be had in the way of reduced interest rates and friendlier repayment terms.
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Alternatives to bankruptcy tend to focus on the very core of how we live our lives, what we expect to own and have in our lives, and how we value material goods. Many financial planners will give the sage (and so very basic advice) that the best way to avoid bankruptcy is simply “living within your means”. If you are using credit cards to accumulate goods that you cannot buy with your on hand cash, you are not living within your means. If you are finding that you live paycheck to paycheck, you are most likely not living within your means.
Of course, there is a wide spectrum of issues as to why and how consumers find themselves in credit card debt and struggling to make ends meet. Consumers who have overwhelming medical bills, have lost a job or have had their hours or pay cut are certainly in a very different place than consumers who simply are not figuring out how to best get their spending under control. There are alternatives to bankruptcy for a variety of consumers to include debt management or debt consolidation. However, the very first step in figuring out how to avoid bankruptcy is to closely evaluate every dollar you spend and how you can budget and allot your funds more wisely, focusing on the basics, and learning to live a more frugal and controlled lifestyle.
We live in a society that is always on the move and we are used to living life in the fast lane. We are used to microwave dinners, twenty-four hour drive-through coffee stands, fast food burgers and fries. Everything we need or want can be accessed in a matter of minutes instead of days. Here are some of the culprits that drive this behavior.
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Alternatives to bankruptcy include a wide variety of ways in which a consumer can consolidate debt and debt management. However, one of the first steps to avoid bankruptcy is understanding how to use credit cards wisely, how to leverage your credit wisely and how to budget so that your credit card usage is strategic and not a way to get luxury items that you cannot afford otherwise. Credit cards can and should be used for specific purposes (as you can earn fantastic benefits including cash back, miles, and other points awards) and with the end thought that if you cannot obtain that item with the cash you have on hand, you most likely should NOT be buying that item with your credit card either.
Now it is an absolute necessity to possess credit cards for a variety of everyday needs. Having only one card is passe. You need multiple accounts. So, it is imperative to know how to use them to your benefit.
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Many students and consumers are struggling in this economy with not only credit card debt, mortgage debt and other financial pressures, but on top of that is also student loan debt. There are ways you can consolidate your student loan debt, obtain a more advantageous interest rate and be able to apply that money saved to pay off of other debt. Student loan consolidation is a great alternative to bankruptcy and can help some consumers from having to take the very serious step of bankruptcy, when coupled with other debt consolidation or debt management programs.
Private student loan consolidation takes some research and planning before making the final decision or it will be consumer beware. Check out what's available and compare their terms. Then write down the offerings of the ones that made your short list and make the final decision based on what you found will give you the best deal. This article will name some of the offers and their terms, but one has to make sure they mean what they say they are.
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Alternatives to Bankruptcy offers the following article about credit card debt and the reality of what can happen if you do not pay your credit cards. Some consumers find themselves so overwhelmed with debt and simply cannot find a way to make the variety of payments.
If you have more questions, call a bankruptcy attorney. They will help you understand what can happen from a legal standpoint. Also, you can ask a trusted financial planner or financial adviser for more information.
Are you drowning in credit card debt? Do you feel helpless? Find out exactly what happens if you don’t pay your credit cards. Get the facts today!
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Alternatives to Bankruptcy offers the following information on debt management.
If you have questions about debt managemet, contact an attorney or a financial adviser/planner. There are viable alternatives to bankruptcy and finding a sound manner of debt management can be a route to dealing with overwhelming debt.
If you are in debt, it might seem like there is no way out. However, if you take the time to look at your options, there may be debt management help at hand.
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Alternatives to Bankruptcy presents the following thoughts on buying big ticket items during this recessionary period.
Without a doubt, for many big ticket items prices are becoming more and more competitive. As technology develops and becomes more accessible, prices can certainly drop. Furthermore, retailers are offering deeper discounts and attractive offers to get your business.
Remember, the best alternative to bankruptcy is to have a smart money plan. Read on for more information!
Thinking about buying a big-ticket item? Make sure that this is the right move for you since we’re in a recession, especially if it would require a loan.
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Altermatives to Bankruptcy presents the following thougths on consolidating student loans.
Let’s face it, any way you look at it college is expensive and unless you have a lot of money or at least a ton of scholarships, you’re going to have to some type of financial assistance to get you through. Many times that financial assistance comes in the form of student loans.
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Alternatives to Bankruptcy offers the following anecdotal information on how credit card companies are adjusting consumers interest rates and the impact that this has on your ability to pay off that debt.
To address one quick question:
Can credit card companies simply just adjust my rate? YES. Credit card companies send you information at the application process, when you received your card, when you received new cards, and sometimes at other points in between. If they have your email, they may have even sent you emails with all kinds of information. DID YOU READ THAT? Probably not, as at some point in time they notified you that they could make adjustments to your rate. All of that legal "gobbly gook" as I love to call it tells you just that.
You have the ability to work with you credit card company, however. You do not need to take this sitting down. Call them, write them letters, the squeaky wheel gets the grease. Typically, with a sound payment history they will work with you. From my personal experience, I have had a credit card go up to slightly over 18% and with a handful of phone calls and a nice letter asking them for their help, it was brought back to about 11%. It can work!
Furthermore, you can also obtain the CREDIT REPAIR BIBLE. This is an amazing credit resource which assist you in taking your credit into your own hands and ensuring that you are managing your credit, getting what you want from your creditors, and setting yourself up for a more sound financial future.
Credit Card Debt and Rate Jacking - It happened in the moment of the twinkling of an eye; one couple’s financial spiral downward started with an arbitrary interest rate increase; better known as rate jacking. They never had a late payment and their credit score was in the 700s. But that didn’t stop one credit card company from raising their rates. As soon as they did, it started a domino effect; their other credit companies followed suit by slashing their line of credit and also increasing their interest rates. If you have a credit card, you had better read this!
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