The people, who are suffering from the pain of bad debts, really wish to get faster relief from this problem.
Majority of the people think that filing for bankruptcy is the best option to deal with the problem of unsecured debts.
It is correct to some extent that with the help of bankruptcy, a person is able to come out from the misery of debts in a very short span of time.
This is the only advantage of bankruptcy.
If we talk about the list of disadvantages, then it is quite large.
One of the major drawbacks of bankruptcy is that it creates negative impact on the credit report and thus, the person becomes unable to take any sort of financial aid from the bank or other institutions for the next seven years.
Besides this, bankruptcy is very time taking and requires a lot many legal documentation and tests.
These days, many alternatives of bankruptcy are available in market and by selecting any of these methods; a person is able to get faster relief from the debts.
Three debt solutions are considered best for the person who is taking the decision of filing for bankruptcy.
Debt consolidation: This is one of the best alternatives of bankruptcy.
With the help of debt consolidation, a person is able to come out from the pool of debts in a very short span of time.
This method is good for all those people who are suffering from the pressure of bad debts of more than one credit card.
Debt settlement: Debt settlement programs are claiming to be the best alternative of bankruptcy.
With the help of settlement program, a person is able to come out form the bundle of financial crunches in a very short possible time.
Both online and offline, many debt settlement companies are working and a person can hire their services without facing any difficulty.
Debt management: In this method, the financial experts of the banks and other institutions let the person know about the proper and accurate use of the credit cards to avoid the situation of filing for insolvency.
Always thinks to file for bankruptcy as the last resort and consider other alternatives before taking the emotional decision of filling for insolvency.