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There are a great many options available to people with debt problems. Two of the most commonly used options are bankruptcy and debt settlement. There are many different opinions out there about which of these two are the best.
Those who feel that bankruptcy is the better option think so because the result is a complete elimination of the debt. Others think that settlement is a better option, because it does not damage a person’s credit history anywhere near as much as bankruptcy. For many, settlement is the best solution. The following is a comparison of both bankruptcy and debt settlement for a solution to how to eliminate credit card debt legally.
First, let’s take a look at bankruptcy. The most important benefit of it is that all of your debt is completely eliminated. So if there is no realistic possibility of paying back what is owed, bankruptcy might be your only alternative. There are drawbacks to bankruptcy that are very important to consider.
The biggest drawback to bankruptcy is that it has a very negative impact on your credit history. This negative impact lasts for a long time. This can make future purchases difficult or impossible. People who have gone through bankruptcy have a difficult time getting mortgages or car loans in the future. Bankruptcy will impact your credit negatively for at least seven years. This is a very serious consequence and most people should try to avoid it if at all possible if you want an answer to how to eliminate credit card debt legally.
If you have the ability to continue to pay for at least a portion of your debt, then debt settlement might be a much better choice for you. Settlement does not erase your entire debt, but it does reduce it. Often, you can get your debt reduced by up to half of your original debt, plus you will not pay any more interest or fees on your debt. Debt settlement will lower your credit score temporarily, but once you have paid back your debt settlement, your credit will be restored. In most situations, debt settlement, if handled by a professional debt negotiator will be the best solution to your debt problems.
If you are having credit problems and are looking for solutions, bankruptcy or debt settlement are both options that you could explore. Based on the information here, debt settlement is most often the best solution for people who are looking for a solution for how to eliminate credit card debt legally.
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