What is the Best Way to Escape Debt

Three options exist for those who wish to resolve their debts, and troubled finances: Debt settlement, bankruptcy, and credit and debt counseling services. Troubled economies have become pandemic, spreading throughout the world, and causing rising consumer debt, and troubled finances. High debts, unsettled credit, and financial liabilities trouble millions of Americans. Many men, and women are forced to make a difficult choice: debt settlement, or bankruptcy. Nearly 1.6 million Americans decided in the year 2003 that they could not address their financial difficulties, or inability to maintain proper finances by filing bankruptcy; instead, they jeopardized the veracity of their credit, rather than settled their accounts–possibly, hurting their ability to fulfill, and prepare for future needs.

One must understand the difference between debt settlement, and bankruptcy: Whether one’s troubled financial situation, and questions are the results of illness, unemployment, divorce, or, simply, excessive spending, settling one’s debts is an exasperating experience that should be carefully considered. One should consider the former before filing for bankruptcy if one’s debts have decreased, and finances have improved.

One cannot, properly, make this decision without understanding the bases for such decisions that address troubled financial situations. Consider, for example, debt settlement: This can be one of the most effective ways to address one’s current debt, and difficult finances. It will improve your credit and status; and help end the harassment by creditors, and bill collectors; usually, allowing the client to settle his bills, and help his troubled finances very quickly: in one to three years.

Bankruptcy is another option for those who must, finally, relieve themselves of debt. Bankruptcy may settle one’s bills, but it is, generally, considered to be an act of desperation, viable, only, after all the alternatives have failed. A bankruptcy will haunt the client for, at least, seven to ten years–most people cannot afford to wait such a long time for reasonable interest rates on their loans.

Bankruptcy will, also, result in higher insurance premiums and possibly the denial of several job offers. Filing bankruptcy, according to employers, implies that one is not responsible enough to pay bills, and these prospective employers are afraid to hire employees who are considered to be so untrustworthy, and irresponsible.

Debt settlement, however, is dangerous: One’s credit, and reputation with potential employers and banks, will be damaged in the process, and the inevitable flaws that result must, eventually, be fixed. Most companies that help clients in this process offer two choices: credit repair services or, after all of one’s debt has been repaid, referral to a company that can help rebuild one’s credit.

Debt settlement, though the lesser of two evils, is dangerous, thus, one should carefully research any company related to the subject. Care must be taken to insure the minimal amount of damage. Bankruptcy may be useful as a desperate measure when no, other, option is available, but it is fraught with many unpleasant consequences.

Alternatively, one can entrust these troubled finances to a credit and debit counseling service, as such services have multiple ways to resolve financial difficulties. Such credit and debit counseling service companies are experienced at improving credit, improving fiscal responsibility, perhaps, even, removing the balance from some of one’s credit accounts.