We are living in very unstable times, financially and many people have been forced to deal with some unpleasant circumstances in their lives. Debt reduction vs bankruptcy is a decision that individuals are being faced with and the choice is not an easy one.
In some situations, the choice will be easy. You may have only one option that will suit you finances at the current time. However, if you start evaluating you options at the first sign of financial duress, you are going to have more choices.
If credit counseling is an option for you, it is going to be a better option than bankruptcy. I say that because your credit will not be negatively impacted. Bankruptcy will remain on your credit record for up to ten years. There are a number of financial experts that have filled bankruptcy and are now millionaires. They will tell you the fact that they filled bankruptcy still rears its ugly head from time to time.
Debt settlement is another option for getting out of debt. This is not an ideal option either. If you have debt that has been charged off and you want to resolve and can do so quickly, debt settlement will work for you. In many cases, people are lured by how quickly debt settlement companies say their clients can be debt free. I am not saying this is not true. But if go from making on time payments or close to it, to not making payments at all so that you can build escrow with a debt settlement company, you are probably asking for trouble.
If you are wondering can you be sued for credit card debts, the answer is yes. Both bankruptcy and debt settlement is going to ruin your credit. The big difference is your lenders cannot take legal action if you have filed bankruptcy. If you read the forums, you are finding more people that have been sued by their lenders while they were going through the debt settlement process. Debt reduction vs bankruptcy is a tough question. Remember, every financial situation is unique. Just like an illness, early detection affords you the most options for treatment and recovery.
