If you can avoid filing bankruptcy, you should. A bankruptcy can seriously affect your ability to get loans and credit for the next seven to ten years. Here are a few other options worth exploring, as well as a few tips on avoiding bankruptcy.
Debt Consolidation
If you are overrun by a number of bad debts, you may want to consider getting a debt consolidation loan. This loan can give you the money you need to consolidate all of your debt into one low monthly payment. This will make your bills much more manageable and allow you to start over with a relatively clean slate.
Credit Counseling
When you get behind on your bills, it is easy to feel overwhelmed. Though filing for bankruptcy may seem like the easiest option, it may not be the best. If you want to avoid filing bankruptcy, try credit counseling instead. Professional credit counseling services can review your situation and give you advice to help you turn things around.
Tips on What You Can Do To Avoid Filing Bankruptcy
In addition to debt consolidation and credit counseling, there are a few other things you can do to avoid filing bankruptcy:
· Try settling your debts. Some creditors may be willing to accept less than what you owe.
· Tighten your belt. Skip the morning coffee, disconnect the cable, clip coupons, and use any money you save to pay off your debts little by little.
· Filing for bankruptcy isn't free. You're going to need to save up or get an extra job. Consider using the money you have and the additional money you could earn to begin paying off the bills instead.
