If you are facing a choice between debt settlement and bankruptcy, you are certainly not alone.
For millions of us, the debt got out of control during the good times, and while the banks got the bailouts, the average American got the shaft.
While ultimately the debt we take on is our responsibility, we do have choices in how we deal with it.
No one in this country is required to remain a debt slave, and if we are willing to pay the price in terms of having our credit score lowered, we can put our financial mistakes behind us.
Businesses do this all the time - it is called acting in one's rational self-interest.
The ones who moralize about it the most are typically shills for the financial industry, who as we all know are the ones most responsible for putting Americans up to the rafters in debt, then asking the government to bail them out from their imprudent lending decisions.
Unfortunately, no one is going to bail out the rest of us; that, we have to do for ourselves.
If you are simply in over your head, and can't afford the monthly payments for all of your debt, then your primary choices are going to be debt settlement of one form or another, or bankruptcy.
If you have a big car payment or two, then Chapter 13 bankruptcy might be in your best interests, as most debt settlement programs only cover unsecured debt, such as credit cards and revolving credit account.
Car payments and mortgages aren't covered in this situation, whereas with Chapter 13 bankruptcy, they are.
Alternatively, if most of your debt comes in the form of unsecured debt, then you need to determine if you can afford to make part, but not all, of your monthly payments.
If you can afford to pay around half of what you are paying, then your choices will be between debt settlement and Chapter 13 bankruptcy, which restructures your debt and requires a partial repayment of your creditors.
In this situation, debt settlement will come off your credit record faster, so it is probably the better choice, as the amount you end up having to pay back will be similar.
If you can't afford to pay around half of what you are currently paying, then your best option is probably going to be to pursue debt liquidation in the form of Chapter 7 bankruptcy.
This will wipe the slate clean for almost all forms of debt except for tax debt and student loan debt.
Car loans and Mortgages will not have the principal or payments reduced, though you can reaffirm the debt and seek a separate restructuring with these creditors.
If you are upside down on both the mortgage and the car payment, you can choose to walk away from both, and the unpaid balance not recovered by the sale of these assets by your creditors will be included in the bankruptcy - so you truly can get a fresh start.
While every situation is different, the types of debt you have as well as the means you have to pay for them are the primary factors in determining whether debt settlement or bankruptcy is the right choice for you.
Ultimately, the best decision is the one that gets the best results for you and for your family.
Act in your best rational self-interest, and your debt problems can become a thing of the past.
For millions of us, the debt got out of control during the good times, and while the banks got the bailouts, the average American got the shaft.
While ultimately the debt we take on is our responsibility, we do have choices in how we deal with it.
No one in this country is required to remain a debt slave, and if we are willing to pay the price in terms of having our credit score lowered, we can put our financial mistakes behind us.
Businesses do this all the time - it is called acting in one's rational self-interest.
The ones who moralize about it the most are typically shills for the financial industry, who as we all know are the ones most responsible for putting Americans up to the rafters in debt, then asking the government to bail them out from their imprudent lending decisions.
Unfortunately, no one is going to bail out the rest of us; that, we have to do for ourselves.
If you are simply in over your head, and can't afford the monthly payments for all of your debt, then your primary choices are going to be debt settlement of one form or another, or bankruptcy.
If you have a big car payment or two, then Chapter 13 bankruptcy might be in your best interests, as most debt settlement programs only cover unsecured debt, such as credit cards and revolving credit account.
Car payments and mortgages aren't covered in this situation, whereas with Chapter 13 bankruptcy, they are.
Alternatively, if most of your debt comes in the form of unsecured debt, then you need to determine if you can afford to make part, but not all, of your monthly payments.
If you can afford to pay around half of what you are paying, then your choices will be between debt settlement and Chapter 13 bankruptcy, which restructures your debt and requires a partial repayment of your creditors.
In this situation, debt settlement will come off your credit record faster, so it is probably the better choice, as the amount you end up having to pay back will be similar.
If you can't afford to pay around half of what you are currently paying, then your best option is probably going to be to pursue debt liquidation in the form of Chapter 7 bankruptcy.
This will wipe the slate clean for almost all forms of debt except for tax debt and student loan debt.
Car loans and Mortgages will not have the principal or payments reduced, though you can reaffirm the debt and seek a separate restructuring with these creditors.
If you are upside down on both the mortgage and the car payment, you can choose to walk away from both, and the unpaid balance not recovered by the sale of these assets by your creditors will be included in the bankruptcy - so you truly can get a fresh start.
While every situation is different, the types of debt you have as well as the means you have to pay for them are the primary factors in determining whether debt settlement or bankruptcy is the right choice for you.
Ultimately, the best decision is the one that gets the best results for you and for your family.
Act in your best rational self-interest, and your debt problems can become a thing of the past.