These days, people are quite confused due to their financial positions. They find it very hard to decide that either they should go for debt settlement or for bankruptcy. Most of them think that bankruptcy is better. It is just because they do not have complete information of both the concepts.
Although the results of bankruptcy seem to be quite fruitful as a person gets rid of all the debts in no time. But in the long run, it is quite noticeable that bankruptcy is the worst choice. It is because when someone is declared bankrupt then it is obvious that he will not be able to get any type of loan from any financial institution or any bank in the next many years. His credit report will have a major negative impact which will last for several years. This proves to be even fatal. On the other hand, the credit card debt settlement programs are totally opposite to it. Although a person has to pay his debts back but, the advantages which he gets are far more reliable and long lasting.
These debt settlement programs are very simple and are easily applicable. You do not need to pass any test or you do not need to prove any financial weak position of yours. Just have to hire a debt settlement company that has a good past record. They will get the desired information from you and will make a plan to get you out of the pool of debts. They will give you both options of clearing your debts ie either by a lump sum amount or through monthly installments. You will make the choice and they will make sure that they carry out your selected plan. As a result, your debts will start to get eliminated according to your terms and condition. On the other hand, no bad rating or points are placed on the financial report. It remains as good as it was before. Once the loan is clear, one can again utilize the opportunity of taking a loan in the hour of need. These advantages show that adopting the debt settlement program is really a better choice as compared to filing for the bankruptcy.