Debt Settlements Vs Bankruptcy - Which Decision is Better For Your Financial Situation?

Nov. 4, 2009 - PRLog -- Due to the burst of the real estate market the economy has been pushed back around a recessionary time which was around 100 years old or more. I am talking about the recession of 1929 which was perhaps of the same magnitude as what we are facing today. There is a huge fund crunch in the market and the demand and supply curve is at its lowest right now. People are not ready to spend what ever money they have as the job front is not secure and pay cuts are the stories of the day.

These difficult times and as a credit driven economy we all have a lot of debt on our plate more than what we can handle. People who have got tired of getting calls from the credit companies and are stuck with a bad credit report are thinking of going ahead and filing for a bankruptcy. It is a desperate measure which people take to get away from the trouble they are facing. The impact is more felt later than realised earlier. The customer becomes completely dysfunctional in the credit market. Everything gets impacted nobody is ready to give you credit basic infrastructure like insurance and other investments become very costly as a bad credit impacts the rate at which you would get these facilities. These impacts last for a period of around ten years which is a huge time frame.

Settlement on the other hand gives the customer a financial setback which is true. However the time frame is less around 2-3 years. In this period when the customer makes timely payments to the creditors he rebuilds his credit profile and also makes himself financially fit for the years to come.

Between a settlement and a bankruptcy settlement is a much better option as it gives the customer the comfort to rebuild his strength and stand tall in the financial market.

It would be wise to not go directly to a debt settlement company but rather first visit a debt relief network. The top debt relief networks only allow debt settlement companies into their accredited organizations that prove a track record of successfully negotiating debts and have also been certified.

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