Friday, December 15

Understanding Personal Bankruptcy And Related Facts

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The recent past has seen a surge in the number of personal bankruptcy filings and it shouldn’t be that surprising a development for anyone that has been following the personal finance scene over in this side of the world. As well, there has been a surge in the number of credit card consolidation and mortgage loans and this has been perpetuated solely by the fact that credit lines are just too open. What makes it worse is that this credit once obtained balloons to a level that makes it virtually impossible to pay off. You know that there is something fundamentally wrong when a student graduates from college with hundreds of thousands of dollars worth of debt on his or her head. Little wonder America struggles to pay its bills.

There are those that run into personal bankruptcy problems because they choose to abuse their credit cards, but there are also those that max it out or run into trouble simply because they have spent money on food, medicines or just everyday bills. It’s a terrible state of affairs, and it’s why America is in such bad shape now. Everyone that has a credit card has some kind of debt and many are considering credit card debt consolidation very seriously. But it doesn’t matter whether you take out Mortgage loans or any other kind of loans, the creditors will keep on calling you and it’s not because they want to wish you a Merry Christmas.

More often than not, these debt collection agencies will run you down and embarrass, even humiliate you as they seek to extract their pound of flesh. Only when you are in way over your head and you have absolutely no other option should you look consider personal bankruptcy as a solution for your needs. That’s because opting to go down that route will trash your credit and make getting a loan in the future almost impossible, so god forbid you will need one. If you are behind on the bills, are avoiding creditors calls and are thousands of dollars in debt, consider credit card consolidation first before you file for Chapter 7.

Credit card consolidation means that you will be able to get the debts from all your credit card under one head. By doing so, you will have to pay one uniform rate on interest on all of your debts and you won’t be able to forget the payment date for it since it is just the one date after all. And very often, you will find that some credit card company will offer you a zero interest balance transfer just because you wish to consolidate your debt under their credit card. You can then take advantage of this zero interest period to aggressively pay off your debt before the interest kicks in.

Paying off tens of thousands of dollars of credit card debt at 19% interest per annum will take you years, so try to go for a settlement payment or credit card consolidation. They are good ideas and a perfect alternative before you file for personal bankruptcy, which isn’t really all that appealing an option.

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