Wish To Be Debt Free? Do Not File Bankruptcy

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If you wish to be debt free you should probably not file for personal bankruptcy. How can that be if bankruptcy is supposed to wipe out your debts with your creditors? Aren’t you supposed to be debt free when you come out of bankruptcy?

The number of people who successfully complete a Chapter 13 bankruptcy repayment plan is around 33%. This means that for 2/3rds of the people who claim Chapter 13 bankruptcy they do not successfully satisfy their repayment plan and default. So they do not fully discharge their debts.

The sad fact is that most people who file for bankruptcy once will eventually file for bankruptcy a second time. According to Suze Orman. iou

Why is it so hard to get out of credit card debt using bankruptcy?

Because unless you can file Chapter 7 bankruptcy successfully, you will have to pay back most of what you owe to your creditors over a rigid 3-5 year repayment plan. You are already struggling as it is to meet your debt obligations and that is why you filed in the first place. But due to the new bankruptcy laws that favor the credit card companies, you will have to pay back most of what you owe and it is harder to fully discharge your debts using Chapter 7.

Instead of filing bankruptcy to get out of debt, consider a bankruptcy alternative such as debt settlement, also known as debt negotiation.

When you fall behind on your credit card bills, medical bills and even IRS tax debt, you can negotiate with your creditors and offer a lump sum payment to satisfy the remaining balance on the account. They will agree to forgive the rest of your debt for that one time payment.

This happens everyday with all the major credit card companies and it is completely legal.

The major credit card banks don’t publicize this option because they have a vested interest in getting you into a credit counseling program in which they only have to waive late fees and over the limit fees and reduce your interest rates instead of forgiving a large portion of your credit card balance.

With debt settlement many credit card companies will forgive as much as 75% of your outstanding balance. And you can accomplish this in as little as 6 months. Compare that to a 36 to 60 month bankruptcy repayment plan.

So to sum up, if you wish to be debt free once and for all filing Chapter 13 bankruptcy may not be the solution to your debt problems.

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46% Of Chicago Homeowners Are Drowning In Debt

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According to an ABC news article, 46% of Chicago homeowners are drowning in debt. They owe more on their homes then they are worth. They are underwater on their homes and their is little relief in sight. There is a small glimmer of hope that many of these homes will be able to be refinanced next year under the Home Affordable Refinance Program (HARP). The president announced looser guidelines to allow homeowners who are underwater on their mortgages to refinance and make the much needed relief possible.

This is just another unfortunate consequence of the financial crisis that caused housing prices to fall all across the country and made it harder to borrow money for people who need debt relief.

If you find yourself knee deep in debt you can check out some of Oprah’s debt tips to see where you can make changes in your lifestyle until the financial crisis is over and home prices go back up so so many people around the country are not drowning in debt anymore.

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Help! I Am Drowning In Debt

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How much credit card debt do you have? $5,000 – $10,000 – $25,000 – $50,000 or maybe $100,000 or more? That is what I would call drowning in debt. It can seem like there is very little you can do to escape from it. You are barely making the minimum payments as it is. Your budget is already stretched thin, you are eating spaghetti and ramen noodles 2 to 3 times a week to save money. You have cut back your entertainment expenses as much as possible. You wait until the last possible day to send off the utility and water bill payments.

So can you can dig your way out of this credit card mess and breathe again?drowning in debt

Drowning in debt can cause you to worry about creditors calling you at home and at work at all hours of the day. It can have you depressed because you cannot pay your bills. It can affect your relationships with your spouse and kids. It can cause you to be more irritable during the day.

But you already know this right? You’ve been going through some of these feelings and emotions lately and you would like it to stop. You need some debt relief and you need it fast.

The FTC has stepped in and made it easier for consumers like you to get much needed credit card debt relief without worrying about getting scammed by a fly-by-night debt relief company.

The FTC has ordered the debt settlement and debt negotiation companies to stop charging upfront fees for their services. This helps you get started getting debt relief without having to worry about paying more money to a debt relief company to get started.

When you are drowning in debt, bankruptcy may seem like your only option. But you should know that most people do not successfully complete a bankruptcy repayment plan. And they still have to suffer the effects on their credit scores for 7 to 10 years.

But that does not mean debt settlement and debt negotiation are for everyone either. It may not be for you. But you owe it to yourself and your family to get more information before you dismiss it completely. You can get a free debt settlement quote and get the information and then decide if you want to try it.

You may decide you can do it yourself and there is nothing wrong with that. You can usually save more money doing it this way. But it takes a lot of time and work to make it happen. A luxury many people do not have.

But if you want to get some much needed debt relief with your credit cards, unsecured loans, personal loans, lines of credit, medical bills, collections, repossessions or business debts you have nothing to lose by getting a free debt analysis from a leader in debt relief. They can explain all your options when you are drowning in debt.

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What to Do When You Are Drowning in Debt?

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A lot of people do not use their credit cards or the money they borrow wisely. That is why they end up drowning in debt. If you are one of these people who do not know what they will do just to pay all their debt, then you too must consider studying all the possibilities that you can do to pay all your loans and outstanding debts without sacrificing too much with its outrageously high interest rate. There are now several choices that you can select to eliminate all of your credit card debt relatively quickly. However, there are some options and programs that are available for you to stop yourself being drowned by debt. Having a debt-free life is worth living for.

The first thing that you need to do to cope up with your debt is to learn how to manage your money. It may quite be hard to do so, but it is a very significant way to lessen your debt with every penny you are earning from your job. Do not disregard any letter or memo that is coming from your credit card banks or lending companies so that you will not face any more trouble in the future. The best way to keep yourself on the track in paying your debt is to be responsible in paying them. You also need to improve your credit as far as it was concerned because if you don’t, it may cause you more damage later in life.

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Even though you have thousands of debt at hand, you can really pay it off as long as you are willing enough to get rid of them in your life. All you need to do is to set a plan, lessen your spending and most significantly, you must work hard in order to comply with all of your expenditures. On the other hand, in some instances, this is not going to work. That is why some people go for bankruptcy in order to eliminate their debt. Still, it is not always a good option at all because it will remain on your credit file for ten years and it will only make it harder to get a loan or credit card in the future.

Aside from bankruptcy, which may not really help you from drowning in debt, you can opt for debt settlement; more specifically do it yourself debt settlement. This is the same with chapter 13 bankruptcy in the sense that your loan or debit is much easier to manage, but your debt is lessened and you only need to pay a onetime lump sum. It simply works by negotiating with your lenders or creditors to acquire the amount you borrow from your lenders or creditors be lowered. But some negotiating firms may not either help you out not to be drowned from your debit or even help you to lessen your loan because of the interest rate and fees they charge you.

It may cost you a lot in the sense that you may notice it. Lose no hope because there are some programs available for debtors that are not as expensive as the fees from negotiating firms. They will offer you a do-it-yourself debt settlement by simply coaching and teaching you the necessary things you need to know to deal with debt. They also offer some materials, such as audio-CD training course that will give you with an extremely systematic and complete learning system on how to settle and negotiate your debts quickly.

Always remember that debt settlement is a continually changing business and it may lead you to more confusion in meeting their terms and requirements, but if you know exactly what to do with the help of these programs and mentors, which are less expensive than with professional negotiating firms, you can go through with your debt fast and smooth.

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