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How To Avoid Bankruptcy & Get Out Of Debt Faster Using Debt
By Kris Bickell, Thu Dec 8th
Has credit card debt got you thinking about bankruptcy? You're not the only one these days. Even with the new bankruptcylaws, credit card debt continues to climb. Unfortunately formost of us, our paychecks don't climb as quickly. If you're on the verge of bankruptcy, you may have anotheralternative.
Debt negotiation is a process where you negotiate with yourcreditors to pay off your debts at a reduced amount - forexample, if you owe $12,000, you can negotiation a payoff of$5,000. The benefit for the creditor is that they get more moneythan they may have through bankruptcy, and they get the moneysooner. The benefit for you is obvious - you get out of debtfaster, and save lots of money in interest. Where do you get the money to pay off the debt? Take the money you would have normally used to pay your creditcard bills, put it aside, and when you accumulate enough to payoff the debt, send in the reduced amount you agreed to. If this sounds confusing, that's ok. It's really not. There are many professional companies that will do
all the workfor you, and charge you a percentage of the savings. I can speak from experience (I built up a lot of debt trying tostart a sporting goods business, which didn't quite work out)that even with the fees, this is a good deal - plus you save alot money by not having to pay the high interest rates on yourcredit card bills. Sure, it is a more aggressive approach to getting out of debtthan making minimum payments, using credit counseling, getting adebt consolidation loan, or borrowing from a friend or relative.But in the end, you'll get out of debt faster... And avoid bankruptcy! If you've never heard of debt negotiation (also called debtsettlement), that's ok too, not many people have. I didn't untilI began to seriously consider bankruptcy. One reason many people are hesitant to consider debt negotiationis that it goes on your credit report. Sorry to tell you, buthaving lots of debt (even if you pay on time), making paymentslate, even credit counseling - all go on your credit report andcan negatively effect your credit. And (of course) bankruptcy isa big negative! In my case, getting out of debt, removing all the financialstress, and being able to live a normal life were well worth it.With so much debt, having good credit was meaningless anyway. Plus, I was able to get all but one of the negative items off mycredit report (that's a topic for another discussion), and mycredit is now back to normal. In fact, I now get more creditcard offers than I can handle - and fortunately, I can now throwthem all in the trash! When money is tight, and debt is high,there aren't many simple answers. But if you are already considering bankruptcy, then debtnegotiation might be the right alternative to help you get outof debt faster! About the author:Kris Bickell is the owner of Debt-Tips.com, a helpful site forconsumers struggling with credit card debt. For tips on gettingout of debt, repairing your credit, saving money, and makingextra money online, sign up for the free "5 Simple Steps ToGetting Out Of Debt Faster, Fixing Your Credit Problems, &Saving Lots Of Money!" email course at:http://www.Debt-Tips.com/. © 2005 Debt-Tips.com
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