Bankruptcy Vs Unsecured Debt Settlement - Why Unsecured Debt Settlement Is Becoming More Common
People burdened with huge unsecured debt often land in the situation due to improper management of money and credit.
This is the reason that by the time the credit card debts spiral out of hand they it is too late to realize that they do not have the means to repay the debts.
This is when they start missing the monthly installments, inviting the aggressive collection tactics and harassment meted out by the credit card companies and their collection agencies.
In desperation they start contemplating bankruptcy.
However bankruptcy has a far reaching and adverse impact on an individual's financial as well as social status.
It is impossible for a bankrupt person to get credit anywhere in the market.
Getting utilities and necessities such as insurance becomes difficult and more expensive.
In fact a bankrupt person may find it difficult to get a decent job or place to live.
At the same time his or her standing in society is damaged a great deal.
A bankruptcy usually stays on a person's credit record for about 10 years and on the public record forever.
At the same time a person's credit ratings are damaged almost irreparably.
This is the reason that a drastic measure like bankruptcy should be avoided by all means.
This is especially possible because nowadays there is an alternative in the form of debt settlement.
These settlement programs are offered liberally by the financial institutions like credit card companies dealing in unsecured loans.
This is because these credit card companies realize that a credit card loan is an unsecured loan and there is no collateral attached to it.
Therefore if a debtor files for bankruptcy the credit card companies will lose all their money.
On the other hand through a debt settlement program if a debtor repays even 50% of the original amount payable, they will be able to recover at least some of their money.
This is the reason that financial institutions like credit card companies are offering debt settlement programs to debtors generously and of their own accord making unsecured debt settlement more frequent than bankruptcy.
This is the reason that by the time the credit card debts spiral out of hand they it is too late to realize that they do not have the means to repay the debts.
This is when they start missing the monthly installments, inviting the aggressive collection tactics and harassment meted out by the credit card companies and their collection agencies.
In desperation they start contemplating bankruptcy.
However bankruptcy has a far reaching and adverse impact on an individual's financial as well as social status.
It is impossible for a bankrupt person to get credit anywhere in the market.
Getting utilities and necessities such as insurance becomes difficult and more expensive.
In fact a bankrupt person may find it difficult to get a decent job or place to live.
At the same time his or her standing in society is damaged a great deal.
A bankruptcy usually stays on a person's credit record for about 10 years and on the public record forever.
At the same time a person's credit ratings are damaged almost irreparably.
This is the reason that a drastic measure like bankruptcy should be avoided by all means.
This is especially possible because nowadays there is an alternative in the form of debt settlement.
These settlement programs are offered liberally by the financial institutions like credit card companies dealing in unsecured loans.
This is because these credit card companies realize that a credit card loan is an unsecured loan and there is no collateral attached to it.
Therefore if a debtor files for bankruptcy the credit card companies will lose all their money.
On the other hand through a debt settlement program if a debtor repays even 50% of the original amount payable, they will be able to recover at least some of their money.
This is the reason that financial institutions like credit card companies are offering debt settlement programs to debtors generously and of their own accord making unsecured debt settlement more frequent than bankruptcy.
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