Real Ways to Avoid Bankruptcy

Imagine this: bills are piling up, and creditors are calling. Even though they shouldn’t waste their time, considering that your answer is going to be the same as it was last week when they called; you just don’t have the money to take care of the bills. Now, this might just be an imaginary scenario for some people, but for far too many people it’s truly the reality that they face everyday.

Are you tired of creditors, bill collection agencies, and even the stress that comes from trying to juggle all of these things while new bills come through? Chances are good that you’ve looked at your options. For example, you might have been told about bankruptcy, or watched someone else go through the process of bankruptcy. For a long time, bankruptcy used to be a dirty word that no one talked about. However, as time passes people realize that sometimes you just can’t assume that everything will be rosy and perfect. You have to realize that there will be times where you have to suck up your pride and look at the best way to solve the problem of debt.

Yet there is a new revolution in town, led by a single question: surely there is a way to avoid bankruptcy and still take care of the things that matter to you?

Thankfully, there really is. First and foremost, you have to understand that the tips in this guide aren’t designed to steer you away from bankruptcy so much as they are a way to help you understand all of your options when it comes to bankruptcy and debt elimination. You can avoid bankruptcy in some cases, but you will need to make sure that this is actually the best way to get things done. You don’t want to try to avoid bankruptcy when it really is the best situation for your needs. On the other hand, do you really want to go through the negativity of bankruptcy when there was a better solution out there? Chances are good that you really don’t want to go through the stress of bankruptcy if you can help it, and it’s with that sentiment that you should look at this guide.

So, what are the real ways to avoid bankruptcy?

Well, in a nutshell, you can always try to work out a better plan with your creditors. A lot of people automatically assume that their creditors really have it out for them, but this really isn’t the case. You will just need to make sure that you actually work with an expert to get the job done. Now, this attitude flies in the face of our DIY culture, but it’s important to break out of the idea that you have to do everything on your own. If you aren’t used to negotiation tactics, you’ll end up caving to the credit card companies, who will gleefully make sure that their focus on their best interests, and not yours. You might think that you’re doing the right thing, or that you’re following a more moral path, but here’s another perspective you might want to think about: your family’s best interests.

If you are thinking more about a corporation’s best interests instead of your family’s, isn’t that a less moral path than it would be to try to come to a compromise? While there are cases of people erasing all of their debts, chances are good that you’ll only be able to settle the bulk of your debts, or a small percentage of them. This means that it’s not like it’s an automatic erasure of all of your debts. You would still have to go through bankruptcy in order to do that.

By showing the company that you want to still try to take care of your obligation, you’ll get a better response from them than if you’re trying to talk to them about bankruptcy. Generally speaking, the company is not going to want to deal with basically having to charge off the amount of money that you owe. However, once again, it’s really not about them and it’s about taking care of your family.

Could you get a consolidation loan to just pay off all of these high interest debt obligations? It depends on your financial situation as a whole. For example, if you have a good bit of money coming in or you know that you’re getting promoted at work, you might want to make sure that you really have a chance to get as far ahead of your debts as possible. The way a debt consolidation loan works is simple: you will get a lump sum that you will use to pay off all of your debts. Anything that’s left over should be used to take care of new debts as much as possible. You want to become completely free of those high interest responsibilities. The debt consolidation loan should have a much lower interest rate, which will let you pay the loan back much faster than just sitting around trying to deal with your debts on your own.

Not sure where to begin, or what path you should really pursue? Again, this is where expertise really comes in handy. There’s nothing wrong with taking the time to talk with a credit counselor who can build you a plan that gets you up and running — why not pursue expert assistance today? You’ll be glad you did!