They wonder which road to take - credit card debt or are planning to file for bankruptcy? This election is not yet sufficiently clear to many in debt, but it will be easier if you consider a few questions to make. It may feel good on stage leads only to get rid of all the tension and anger and failure, but in reality the best option for you? Let's look at some facts.
Suppose that fight for some time to respondThe credit card bills - even the minimum payments are a bit 'of a struggle today. Your credit card companies are therefore sold the debt to a collections agency. (Usually within a couple of days that this is done the collection agencies contact you or groped to) with you, both by telephone and by letter. Not very nice either! They want their money, and they want it now!
If not, first, at least in some way along the line, whichwill reduce the quantity of demand, and very often it is a very significant reduction of the time the original debt. If you continue to pay and get the collection agency, for example, approximately 60% of the final payment you make, so that only 40% for the original creditor / s.
You must ask why the original lender is willing to such a small amount compared to what would have been satisfied, but before you answer that, we can have a quick look at some numbers just tomake everything clear.
Here you can imagine, thanks to 20,000 dollars in credit card debt.
The collection agency calls for total payments of only $ 10,000 from you fully and completely settle the debt.
The collection agency is thus 60% of these = $ 6,000.
The original creditor receives the remaining 40% = $ 4,000.
The credit card company is obviously in a very small amount of what is actually used for the debt and the reason I willing to accept is that you compare this number, first, that if you were to get to Chapter 13 bankruptcy is declared - you would get less benefit. If you are on Chapter 7, however, say it would be nothing!
So you can at the end of time to pay much less than it would otherwise not on the debt. All that thinking about something else? Undoubtedly. If you are in bankruptcy, this is your credit file for a total of 10 years to take another, based> Credit for this period. If you are on the composition of debt, take the file is "contaminated" for 7 years.
If we take the path of bankruptcy, there are no other taxes are paid, ie:
- Lawyer
- A bankruptcy filing fee
- Court
- A charge for borrowing a training course before registering, and you must take the course.
And if you default on the conditions of bankruptcy should be restartedBeginning, and would lose pay at the same time all the money for the expenses referred to above. A high price to pay for all the results!
So it seems that if the debt has become completely unmanageable - and I'm completely out of control, that - one must always consider a settlement before that considerations of bankruptcy.
