If you find yourself in a desperate financial situation, you may feel that there are no good options. When the debt has piled up and you’re not sure what to do, what options do you really have? Actually, there are a few different routes to take to help yourself get back on your feet and be financially secure. Although they aren’t the only two choices, debt settlement and bankruptcy declaration are two viable options that can help you get out of debt. Understanding the differences between them is key to know which is best for you and your situation.
Debt settlement is the practice of taking an amount of debt with a respective company and renotigating and a smaller amount is decided upon in order to mark the debt as being paid in full. Although there are consequences to this and companies are not always willing to negotiate, this is a worthwhile strategy if you have a particularly large debt that you are having difficulty paying off. Going through a debt settlement will likely hurt your credit score, but under most circumstances, it is better than continuing to fall behind on payments.
Bankruptcy is viewed by many to be a financial last resort and, to some degree it is. By declaring bankruptcy you are legally stating that you are unable to pay off debts and are requesting, to the state, to have the slate wiped clean. Bankruptcy declaration must go through the courts and is certain to bring down one’s credit score, but it is the better option if the odds of getting out of debt look slim. For example, if you have an overwhelming amount of debt and lose your source of income, it may be best.
If you are uncertain about whether debt settlement, bankruptcy declaration, or any other strategy is best for you or you are uncertain how to go about them, we at Cain and Daniels are here for you. Our goal is to help you realize your financial goals of getting and staying out of debt and we’ll do whatever it takes to see this for you. For more information about the services we offer, please call us at 855-780-1164 any time!