Bankruptcy VS Debt Settlement

By: Michael Millington

Sometimes there are instances when things become too hard to handle. Emergencies pop up and you have no choice but to deal with them immediately. You might have made some bad decisions in your younger years financially. Now everything is catching up to you and you have no idea where to turn or what to do. It might seem like you’re in over your head and you’ll never be free of the debt you’ve accumulated but that couldn’t be farther than the truth. There are ways to help your situation and get yourself back to a positive financial standing. You can seek debt settlement or you can file for bankruptcy. But which one should you choose? What are the differences and where should you lean?

 

How Does Bankruptcy Affect You?

Bankruptcy is an option that you can look towards when you’re in over your head with debt. The basic premise of filing for bankruptcy is to get rid of your immediate debt situation. Although it’s meant to be a quick fix to dig yourself out of debt it is not without its consequences. Not all of your debts will be covered by bankruptcy and those that are might require your assets as a form of payment. It can take up to 10 years to recover from bankruptcy and the impact it will have on your credit. It can hinder your ability to apply for credit cards, loans or even a new job. Your debts will generally disappear within six months from filing and you will have a clean slate financially, but you will need to go through the legal procedure which will require you to pay for a lawyer and court fees. Most lawyers will be able to give you a consultation for free if you’re on the fence about whether bankruptcy is the right course for you.

 

How Is Debt Settlement Different?

Debt settlement with Guardian Debt Relief is different than filing for bankruptcy in many ways but offers some of the same benefits with less of an impact to your financial health. Guardian Debt Relief can help you save money on the overall debt that you have that you owe. Instead of wiping your debts clean, you would make monthly payments toward an escrow account while your debt gets settled to an amount that you can pay down. The principle amount of debt you owe can be negotiated down to help alleviate the full force of the debt you’re facing, meaning you can end up paying less to achieve your goal of debt freedom. Debt settlement does not require any asset liquidation in order to pay, keeping your valuables safe from those looking to collect. Perhaps the biggest benefit of debt settlement is the fact that you can end up making smaller, manageable payments on your debt.

 

Remember: It’s Up to You to Make the First Move

With debt being a real problem many of us face the pressure to find a way to satisfy creditors and eliminate debt is a growing source of stress. There are many methods to help reach the same goal and they offer their own distinct paths to debt freedom. Whichever approach you decide to take you should always seek professional assistance to help provide you with proper insight. Consultation is free from many providers and it takes away much of the apprehension associated with debt elimination. Just make sure you take the first step towards gaining freedom from debt and reach out.