Credit Solutions To Consider, Debt Consolidation, Bankruptcy Help!

Credit Solutions to Consider
by Lee Sundance

I’ve been there. I can understand we’re going through. With each a ring of the phone that gut wrenching feeling your soul becomes harsher and harsher to the point it eventually overwhelms your confidence in your ability to solve your debt problem. You feel that there are no credit solutions to the situation you are in.

There are options available to you. You may not like some of them. You may not like any of them. But, here are some options to consider.

Debt consolidation is one of the first credit solutions that comes to mind. Of course, for many of us this is not an option because a prerequisite for this option is some sort of valuable collateral. Most of the time, real estate of some sort is used. You may also be able to use a solution if you know someone who will cosign for you. Debt consolidation can be worth it to you even at a higher interest rate, as it may be able relieve you of the overwhelming emotion burden.

Bankruptcy is one of the last options anyone ever considers. In the financial world is almost considered the worst curse word you can use. I agree, that is not the most optimal of all credit solutions available. Yes there will be a mark against you on your report for the following seven years after declaring bankruptcy. It will also prevent you from getting the best interest rates available on future loans, especially during that seven year time frame. However, it may not be as bad of an option as you feel it is at this moment. I’ve known several people who have declared in their lifetime, and each one of them has expressed to me at one point or another they felt that it was the best financial decision they could have possibly made. For most of them, the relief from the debt burden alone was worth the future lack of convenience.

Waiting, believe it or not, is one of the credit solutions some people use to relieve their debt burden. This method is not recommended by anyone. It is by far the worst option available. That being said, although it is tough to ignore creditors and continually hide from them after seven years the information should fall off of your report. Thus relieving you of your financial obligation and a legal sense. There are some legal loopholes to this method, so I don’t believe it is as viable of an option as it was years ago. Once financial institutions started buying and selling the debt as an asset, what would happen is your account would get sold from institution institution. Each time this happened the new institution would have seven years to collect on the debt or to put marks on your report. So, in essence, it was the financial institutions way around someone using this method. I know some individuals who have used this method before. They have expressed to me that it is much tougher to move from residence to residence, from job to job, and to find someone else’s name to put your utilities in that it would have been to face this head on or use other credit solutions.