Time may arise when people become frustrated and start thinking that Bankruptcy is the only option open for them, without thinking the worse situation that need to be faced for rest of the years after filing it. Moreover the recent Legislation which has been passed has made it more difficult to file as well. Bankruptcy raises question against your creditworthiness, so as a financial adviser, my advice would be to avoid it or keep it as a last choice. There is also certain reason for people selecting bankruptcy as the only option. These are illness, unemployment, divorce or simply overspending. This is the reason why I suggest Debt consolidation or settlement if debt is getting over your head.
Debt settlement on the other hand helps to improve financial situation by providing gradual relief and peace. It helps you come out of harassing creditor calls, disturbance from collection agencies etc. It also enables you to pay off 40% to 60% of total amount that you owe within two to three years of time span. So the final aim should be achieving Debt settlement. To achieve it one's attorney may require to be re-negotiated on prices and payments that no one wants to part from. Lenders do extend help in such case with customer's attorney. Debt consolidation means making a plan of how to pay back things and executing that plan. Considerable items over here include cars, houses, appliances or any credit purchases not paid yet. So my suggestion would be before deciding to accomplish debt consolidation, think about all other conditions, talk to an attorney and then plan your action, because after everything is done there would be no one to blame. Debt consolidation or settlement improves debt ratio. If one is aiming to eliminate bad or unsecured debt, then without waiting apply for debt settlement today and consolidate all your debt problems and live a happy life ever after.