If you’re drowning in debt and bankruptcy seems to be the only way out, think twice as there are alternatives which can help you pay off bills fast without affecting your credit as severely as bankruptcy. Debt settlement is one such alternative. It enables you to get out of debt legally by allowing you to pay much less than what you actually owe.
Debt settlement vs bankruptcy – Tips to help you make the right choice
Check out 7 things you should do to decide upon debt settlement vs bankruptcy.
- Check your credit report: Find out what negative items (such as late payments, collections, charge-offs, etc) you have on your credit report and on which accounts you still owe money. This will help you determine the extent of your indebtedness.
- Calculate your total debt: Determine how much you owe in total. Add up the outstanding balances on your credit accounts including those which are in collection.
- Calculate income from all sources: Determine your total monthly income including paycheck, bank savings, rental income, alimony/child support, investment returns, etc.
If your income doesn’t exceed the amount paid towards your basic financial needs including housing expenses, utility bills, gas, groceries, etc., then you shouldn’t go for settlement. This is so because you can hardly save anything to settle your bills with a lump sum payment after a certain period of time….. read more »